I have a client who has been advised:

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    • The deadline to amend your 2021 income tax return is March 15, 2025,
    • You are required to amend your 2021 tax return to report the ERC claim, regardless of your current situation: If you have not yet received the credit, you still need to amend your return to account for the claim

They have not received any correspondence from their PEO (Co-Employer) relating to the status of this claim.

They also have been advised to :

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    • If you have not yet received your 2021 ERC claim (regardless of whether you have amended your tax return), we recommend filing a protective claim
    • A protective claim is a precautionary filing with the IRS that preserves your right to a potential tax refund in case the situation affecting your tax return is unresolved by the amendment deadline

My Questions:

  1. with them being an accrual company, is the amended return "required"? even if they have no indication if the ERTC has been approved?
  2. What is the recommendation of a protective claim? I do not understand?

Thanks for any input.