...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 p...

...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 p...

...I just found out a client had someone apply for the ERC and amend the 941s for them.   This is for 2020.  They have not received the 2020 refunds, but did just receive the 2021 refunds. I thought I had read somewhere that 2020 needed to be amended by 4-15-24.  Is that accurate?  Their 2020 return was extended. Can I/should I amend the 2020 returns for the S Corp still or wait since nothing was received. I am aware that I need to amend 2021 now.   These are l...

...My client received the employee retention credits for the year 2020 and 2021 in the year 2023.  We need to amend the 2020 and 2021 S corporate returns to reduce the wages. Does the 2020 return need to be amended before September 15, 2024?  Can the 2020 return be amended after September 15? ...

...My client received employee retention credits for the year 2020 and 2021 in the year 2023.  I know we need to amend the 2020 and 2021 corporate returns by reducing the wages, but is there an alternative way of treating these refunds?.  Some practitioners have decided to take it as income in the year received.  So is there a way of showing this as income in 2023 which i have not filed yet, rather than amending the 2020 and 2021 s-corporate returns, which will further result in amen...

...When I was preparing my client's S Corp 2023 return I realized that I had incorrect Basis for the State. When I prepared the 2021 return (timely filed reporting the correct ERC amount) I did not realize I had to override my software to add the ERC to the CA basis. I know I can fix the Basis in 2023 by putting the ERC amount on line 10 of the Basis worksheet (Other increases) with an explanation "2021 ERC correction understated basis". But I wonder if I need to adjust the CA M-2 Accumulated Adjus...

...Client would not amend the 1120S & 1040 until they received the ERC credit. Now that they received the money the statute has expired. Should amended tax returns and payment just be filed accordingly? ...

...Is tax treatment the same as if the client filed the ERC themselves?   Reduce wages in the year credit was generated.  ERC refund/credit was issued to client from PEO, not IRS. ...

...Does anyone have experience with clients who applied for the ERC for the 2020 Q4 and have not received those payments? ...

...Our S-Corp client received a good ERC credit in 2023. The credit was based on amended wages on the 2021 and 2022 Form 941-X. Do we simply amend the 2021 and 2022 S-Corp and Individual returns to report reduced wages in 2021 and 2022? Are there any webinars or Spidell news letters that cover this in detail? ...

...Is the ERC Withdrawal process still available?  Where the 941-X is faxed to the IRS with "Withdrawn" is printed in the left margin and the signature is in the right margin?  Also, The signing officer is in the hospital, will a Director's signature suffice? ...

...Today, the IRS announced a second Employee Retention Credit (ERC) Voluntary Disclosure Program (VDP). (IRS Announcement 2024-30) Notable aspects of this second ERC VDP are: The second ERC VDP is only available for ERC claims filed for tax periods in 2021 and for which the taxpayer received an ERC refund prior to August 15, 2024; Where the first ERC VDP allowed taxpayers to repay only 80% of their erroneously received ERC refunds, this second ERC VDP requires taxpayers to repay 85% of the...

...Today, the IRS announced a second Employee Retention Credit (ERC) Voluntary Disclosure Program (VDP). (IRS Announcement 2024-30) Notable aspects of this second ERC VDP are: The second ERC VDP is only available for ERC claims filed for tax periods in 2021 and for which the taxpayer received an ERC refund prior to August 15, 2024; Where the first ERC VDP allowed taxpayers to repay only 80% of their erroneously received ERC refunds, this second ERC VDP requires taxpayers to repay 85% of the...

...My client is driving me crazy about ERC and I told her that the refund claims are on hold.  She insists that she spoke with the IRS about her claim.   My question is - Is the IRS taking phone calls regarding the status of the refund?   Thank you Spidell for the update that you put out regarding the ERC. ...

...Client's original 2020 return resulted in a NOL that was carried forward to 2021.  After amending 2020 for the ERC credit, they no longer have an NOL.  They will need to also amend 2021 to remove the NOL deduction that was taken when the return was originally filed.  Does anyone know if the penalty abatement will apply to the 2021 amended return?  It is being amended due to the ERC credit, although indirectly. ...

...The IRS has announced that it will begin processing Employee Retention Credit (ERC) claims submitted prior to February 1, 2024. (IR-2024-203) Previously, the IRS had placed a moratorium on processing any claims submitted after September 13, 2023. The IRS has also stated that: They will prioritize moving the outstanding "low-risk" claims out for payment and the "high-risk" claims out for denial, and will carefully examine the remaining claims; They have approved up to 50,000 ...

...The IRS has announced that it will begin processing Employee Retention Credit (ERC) claims submitted prior to February 1, 2024. (IR-2024-203) Previously, the IRS had placed a moratorium on processing any claims submitted after September 13, 2023. The IRS has also stated that: They will prioritize moving the outstanding "low-risk" claims out for payment and the "high-risk" claims out for denial, and will carefully examine the remaining claims; They have approved up to 50,000 ...

...Today the Senate failed to pass the American Families and Worker's Act of 2024 (TRAFWA) by a vote of 48 to 44 (it required 60 votes to pass). This is the bill that was passed by the House in January 2024 on a vote of 357 to 70. At the time the bill passed the House, it had bi-partisan support, and commentators were expecting it to pass swiftly. Had it passed, the bill would have, among other things: Increased the Child Tax Credit; Retroactively reinstated current expensing for domesti...

...Today the Senate failed to pass the American Families and Worker's Act of 2024 (TRAFWA) by a vote of 48 to 44 (it required 60 votes to pass). This is the bill that was passed by the House in January 2024 on a vote of 357 to 70. At the time the bill passed the House, it had bipartisan support, and commentators were expecting it to pass swiftly. Had it passed, the bill would have, among other things: Increased the Child Tax Credit; Retroactively reinstated current expensing for domestic...

...The IRS has been sending interest expense computations for amended returns to adjust for the ERC credit - and it's pretty clear this cannot be abated. However, if the increase in tax for which the interest expense is incurred is from an active trade or business for which the taxpayer materially participates, would the interest expense be deductible by the business? Specific situation - an S-Corporation is amended where the ERC is adjusted for wages deduction - The net increase in tax is in the...