September 8, 2021 IRS issues temporary and proposed regulations on recapture of excess employment tax credits The IRS has issued temporary (TD 9953) and proposed (REG-109077-21) regulations addressing how the agency will recapture excess employment tax credits under the American Relief Plan Act of 2021. Effective September 10, 2021, the temporary regulations authorize the IRS to make assessments to recapture any erroneous refund of tax credits paid under IRC Sections 3131, 3132 and 3134. | ||||