What Are Claw Backs?

Have you ever heard of the term “claw back” but really do not know what someone is referring to?

Claw backs is the distinguished amounts from refunds or even repayments that also involve penalties and the repayment.  They are generally used when securing abatements, tax incentives, grants, and refunds.

You should always determine the liabilities of claw backs and report them periodically.   The liabilities is the gross of the taxes that are paid and should be paid with the two years.   You will want to be sure that the full amount of the liabilities of the claw backs are met!