- Our Team
September 20, 2022
The federal government’s Employee Retention Credit proved to be a lifeline for many businesses and their employees. The eligibility rules were complex and changed over time, as noted in an extensive IRS chart. Not all owners may have been able to figure out whether they were eligible; however, the IRS is giving them a break: Even though the program has ended, employers are still able to file for tax relief retroactively.
According to the IRS, most taxpayers became ineligible to claim the ERC for wages paid after Sept. 30, 2021. (A recovery startup business can still claim the ERC for wages paid after June 30, 2021, and before Jan. 1, 2022.) However, companies have three years to claim benefits they’re entitled to.
The key is Instructions for Form 941-X, Adjusted Employer’s Quarterly Federal Tax Return or Claim for Refund. It’s a complicated form, but it clearly notes, “Generally, you may correct overreported taxes on a previously filed Form 941 if you file Form 941-X within 3 years of the date Form 941 was filed or 2 years from the date you paid the tax reported on Form 941, whichever is later.”
The bottom line? If you haven’t been sure whether you were eligible for the ERC during its open period, you have some breathing room to see if you are retroactively entitled. Don’t leave the money sitting on the table any longer; contact a financial professional experienced in the law’s many nuances as soon as possible to make sure you get every dollar you’re entitled to.
January 25, 2023
Even if your business has only a few employees, you may be considering outsourcing your payroll processing to a specialist. What can a payroll processing service do for you? No matter whether you outsource or not, you are still legally responsible for tax and other compliance issues. However, by hiring a qualified service provider, you’ll […]
January 25, 2023
In early January, the IRS announced that it was postponing various tax filing and payment deadlines for storm victims in the Golden State. As a result, says the Agency, affected individuals and businesses will have until May 15, 2023, to file returns and pay any taxes that were originally due during this period. This relief […]