Per Spidell Flash Email 2015-18, IRS is now telling taxpayers to report ERC refunds received in 2024 as income on the 2024 tax return. (As opposed to amending 2020 tax return which is considered a closed tax year).

What about ERC refunds received in 2023?  when we prepared the 2023 tax return of a client, we put the 2020 Q2 refund received in 2023 as an M-1 item on the 2023 tax return and informed the client that the 2020 tax return needs to be amended. however, the client never provided workpaper needed to amend the 2020 tax returns so that never happened yet.

so now that IRS is considering 2020 as a closed tax year, what shall be done for the 2020 ERC refund received in 2023?  Can we include it in 2024? or should the 2023 tax return be amended?