...Do I need to amend my client's 990 to reflect a wage adjustment due to the ERC? Do I report the ERC as a grant? I can't find any info on this topic. ...

...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 w...

...I received an email from KPMG a few weeks ago saying: "The IRS has just released updated ERC FAQs on March 20, 2025, clarifying that protective claims for amended tax returns are no longer necessary. " It went on the give examples about when you can simply include the income in the year you receive the money and not amend the prior returns. I have not heard anything else about this. I was thing Spidell would issue some email flash about it. Is this true? ...

...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 i...

...refund checks without repercussion and use these payments to pay the resultant taxes due when the wages are reported on the tax return for the year the ERC refund was received. ERC credits disallowed The IRS also provided guidance for taxpayers whose ERC was disallowed, who had previously reduced the wage expense on their return for the year the ERC was claimed. These taxpayers may, in the year the ERC claim disallowance is final, increase their wage expense on their income tax return by t...

...refund checks without repercussion and use these payments to pay the resultant taxes due when the wages are reported on the tax return for the year the ERC refund was received. ERC credits disallowed The IRS also provided guidance for taxpayers whose ERC was disallowed, who had previously reduced the wage expense on their return for the year the ERC was claimed. These taxpayers may, in the year the ERC claim disallowance is final, increase their wage expense on their income tax return by t...

...2021 ERC claim is due 04/15/25 - taxpayer located in Los Angeles. Is there an extension till 10/15/25 for this deadline as a result of the wildfires? ...

...I have a tax client who applied for the ERTC for tax years 2020 and 2021 and received $60k of refunds from the IRS in 2024 and paid out $17k to the company that processed them for him.   I know the 60k should be applied against payroll in an amended return for 2020 and 2021, but in what year does the $17k get expensed?   In 2024, the year it was paid, or netted against the refunds on the amended returns?   My client shut down his business in 2024 and didn'...

...I have a partnership that closed Dec 31, 2022 and final returns filed. Late 2023/early 2024 they filed amended 941 returns for the 1st and 2nd qt of 2021 for ERC. The received the money November 2024. The money was deposited into partner #1's business account - he said he posted it as owners contribution -- (He opened a business with the similar name as the old business when they folded in 2022 and basically continued the old business under a new S Corp). A 1099INT was sent to report 2024 intere...

...I have amended returns for Schedule C taxpayers for 2020 to add back in the ERC money they received.  The IRS is returning them stating the statute of limitations is up. Any idea of what to do? I can't adjust any basis as they are a proprietorship, not a corp. ...

...Last tax preparer amended 2020 business return, K1, and 1040 when ERC claim was filled. ERC payment is in limbo, not received not yet turned down. IRS is expectedly demanding payment on 1040x. Taxpayer is expectedly saying hold up. We called IRS practitioner hotline and agent that answered had no knowledge of ERC programwe were talking about, and didn't understand the problem. Currently thinking amended the amendments and assume money will never come. Any ideas on what to do?   ...

...I have a client who has been advised: <li style="list-style-type: none;"> 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 bee...

...i recently found out that ERC income for federal purposes is tax free.  My question is that for 2020 taxes, federal is locked because of time. / year. is their any way we can amend the federal 2020 , or are we SOL ...

...What amount(s) on Form 941-X do you use to reduce the wages for amending a corporate tax return due to receiving an ERC refund? ...

...An SCorporation has received some, but not all of the ERC claims filed.  It does qualify and so is not withdrawing any of the previously filed claims.  The corp has not yet filed amended SCorp returns for 2020 or 2021 as there are one or two quarters in each year for which the refunds have not yet been rec'd.  Given the time that has passed and it os more than 3 years from the 2020 1120-S original filing date and close to the 2021 1120-S original filing date, should amended SCorp ...

...Hi, I have several clients who are still waiting for ERC refunds. I had a friend call and say their client received a letter from the IRS saying that the 2020 amended returns (business and personal) were out of the statute and sent the individual their check back. I've seen another post with a similar issue. The response was tell the individual to enjoy their money. This doesn't feel right to me. I can't see the IRS issuing ERC refunds this late in the game and not intentionally extending the s...

...The IRS announced that it is extending the deadline for third-party payers to file corrected ERC claims from November 22, 2024, to December 31, 2024. (e-News for Tax Professionals 2024-47) As we reported previously, this consolidated claim process allows third-party payers who filed ERC claims for multiple clients on a consolidated basis to withdraw the ERC claims for some, but not all, of the prior claims. Details about who is eligible and how third-party payers can apply are available in ou...

...The IRS announced that it is extending the deadline for third-party payers to file corrected ERC claims from November 22, 2024, to December 31, 2024. (e-News for Tax Professionals 2024-47) As we reported previously, this consolidated claim process allows third-party payers who filed ERC claims for multiple clients on a consolidated basis to withdraw the ERC claims for some, but not all, of the prior claims. Details about who is eligible and how third-party payers can apply are available in ou...

...Amending a client's 1040 for ERC that their S-Corp received for 2020. The 1040 had unused Form 3800 credits that were used in 2022.  With the ERC, the credits are now all being used on the amended 2020 1040. What to do?  Lower the credits available on the 2020 amended to account for what was used in 2022?  Or amend 2020 with all of the credits and then go back and amend 2022 to remove the credits used on the amended return? ...

...I have a new client whose prior preparer filled out the 941x's for the ERC. He signed it not only as the paid preparer but also signed in the box normally signed by the owner. If audited, will the preparer be on the hook as the signer? ...