Spidell,

Thanks for the update on the new ERC process just released by the IRS. On Monday, 3/17/2025, we paper-filed an amended 2020 Form 1120S to reduce wages for the ERC credit received in 2024. We were also planning to file amended 1040s for 2020, 2021, and 2022 due to basis and loss carryovers.

However, given this new guidance, it would be much simpler to report the ERC as income in 2024 instead of amending three years of returns and later dealing with multiple penalty abatements.

Would it be possible to file a second amendment to the 2020 Form 1120S to reverse the wage reduction and instead report the ERC income in 2024?

Thanks for your insights!