The IRS has announced a special process available only to third-party payers (TPPs) to resolve incorrect ERC claims. (IR-2024-246)
The new process allows TPPs that filed prior ERC claims with multiple clients to effectively withdraw ERC claims for only some clients while maintaining other ERC claims. One of the hurdles to other ERC relief announced by the IRS was that TPPs that wanted to withdraw claims had to do so for all clients included on a joint filing.
The supplemental claims process is only available for TPPs to which all of the following apply:
- The TPP has filed one or more ERC claims aggregating credits for itself and/or clients using the TPP’s EIN;
- The TPP made the claim on an amended payroll tax return; and
- The IRS has not processed any of the claims the TPP is including in the supplemental claim and is not auditing these claims.
When filed, the supplemental ERC claim replaces an outstanding (and unprocessed) ERC claim. The IRS will treat claims filed before the supplemental claim as if they were never filed. Supplemental claims can only be filed to replace claims filed on or before January 31, 2024.
TPPs who file supplemental claims must file a separate claim for each tax period (payroll quarter) and all supplemental claims must be filed by 11:59 p.m. on November 22, 2024, which is the same due date as the second ERC Voluntary Disclosure Program. TPPs file supplemental claims by filing another amended payroll tax return for the applicable quarter.
TPPs looking for more information about filing supplemental ERC claims should review the IRS’s dedicated webpage on the topic. Go to:
www.irs.gov/coronavirus/filing-a-supplemental-claim-for-the-employee-retention-credit
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