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ERTC ALERT!!! Employers DO NOT have to amend old tax returns if they received ERC. Instead, the IRS said to report the credit as income on the return for the year the refund was received. 🧵 1/ This is not tax advice. Consult with your CPA. www.irs.gov/coronavirus/...

irs.govFrequently asked questions about the Employee Retention Credit | Internal Revenue ServiceThese FAQs provide general information about eligibility, claiming the credit, scams and more guidance about the Employee Retention Credit.

Linda Rey and Trevor

@eidlconsulting.com

13 May 2025

2/ The IRS gives this example: Business A claimed an ERC of $700 based on $1,000 of qualified wages paid for tax year 2021 but did not reduce its deduction for wages in its income tax return for 2021.

Linda Rey and Trevor

@eidlconsulting.com

3/ The IRS paid the claim to Business A in 2024, so Business A received the benefit of the ERC but hasn’t resolved its overstated wage expense on its income tax return. Business A does not need to amend its income tax return for tax year 2021.

13/5/25, 1:30 pm0 reposts0 likes

Linda Rey and Trevor

@eidlconsulting.com

13 May 2025

4/ Instead, it should account for the overstated deduction by including the $700 in gross income on its 2024 income tax return.