To increase the penalties applicable to persons facilitate fraud with respect to any COVID-related employee retention credit, and for other purposes.

HR 9738 increases penalties for individuals or businesses that help fraudulently claim COVID-19 employee retention tax credits (ERTC). It raises fines to $200,000 (or 75% of income from the scheme) for promoters who aid in fraudulent claims, adds $1,000 penalties for failing due diligence checks, and requires promoters to disclose client information. The bill specifically targets tax preparers or consultants who charge fees based on credit amounts or derive significant income from such claims. It also extends the deadline for claiming these credits to January 31, 2024, and adjusts assessment timelines for related tax disputes.