Description:

A moratorium on the processing of new employee retention credit (ERC) claims was announced by the IRS in mid-September, and it will remain in effect until December 31, 2023. Given the overwhelming volume of false claims (up to 95% in some cases, according to the IRS), tax professionals should applaud this modification.

ERC Deadlines: Is it Still Possible to Apply for the Credit?

Yes, companies are still able to apply for the ERTC. Businesses can still pay wages that qualify for the ERC credit even if the ERTC programme has officially ceased. However, this does not affect a business’s capacity to claim the credit in the past. Eligible businesses can claim a credit of up to $26,000 per employee. Even if your business received a PPP loan, you may still be eligible for the ERC.

In reality, companies can perform a lookback to see if they still meet the eligibility conditions up to three years after the programme ends. Companies can file updated returns for the 2020 Q2, Q3, and Q4 until April 15, 2025. They can also file amended returns for the 2021 quarters in which they were qualified to receive the ERC until April 15, 2025.

This webinar covers the moratorium in detail, as well as recent IRS guidance on supply chain disruptions, and other “what’s new” topics. We have a deep discussion of ethics, in particular, what a tax pro should do if your client went to a credit mill and put in a wrongful claim. The IRS is going to be rolling out 2 options for businesses that made wrongful claims: one option is to withdraw the credit claim before it’s been processed, and the other option will be an amnesty program for businesses that made wrongful claims that have already been paid. Exact details are still pending, but we will talk about what we know. And, through it all, practitioners have ethical considerations and client relationship considerations. We then discuss aspects of qualifying for ERC: what is a shutdown? What is the gross receipts test? Who is a recovery startup? We will tackle the complex area of aggregating related businesses, and cover the impact of ERC on income tax returns.

Session Highlights:

• What’s New: IRS Chief Council Memorandum, FAQs, and Enforcement
• Ways to Qualify
• Scenario Analysis
• More on Shutdowns
• Gross Receipts Test
• PPP Loans, FFCRA Wages
• Tax Deductions
• Retroactive Claims
• Ethics Discussion

Learning Objectives:

• To describe the impact of the IRS moratorium on processing new ERC claims.
• To evaluate and apply the IRS’s perspective on supply chain disruptions as a qualifier.
• To review Circular 230 and other ethical issues relating to ERC.
• To analyze the 3 ways to qualify for ERC.
• To define what “wages” are for ERC purposes.
• To discuss the basics of the aggregation rules.
• To evaluate the impact of ERC on income tax returns.

Who Should Attend:

• CPA
• Enrolled Agents (EAs)
• Tax Professionals
• Attorneys
• Other Tax Preparers
• Finance professionals
• Financial planners

Jason T. Dinesen

Jason Dinesen (EA, LPA) is a tax nerd,entrepreneur, tax expert and a well-known presenter of continuing education courses. Known for his sharp tax interpretations, he is one of the quickest to bring the analysis of the latest tax updates and IRS guidance to the professional community. Jason has coached over 200,000 accounting, tax, and HR professionals on various topics of accounting, individual taxation, corporate taxation, professional ethics and much more. He has presented over dozens of webinars on Form 1099 (for 10 years on this subject!); marriage in the tax code; tax updates; the new Form W-4, payroll updates, filing status, tax credit and other issues relating to the modern-day household setting. He also teaches 2 classes at Simpson College, Individual Income Tax and Business Analytics. Jason always had a knack for radio shows and has and regularly features as an anchor for Radio Iowa. Jason was born and raised in Iowa and has a degree in corporate communications from Simpson College in Indianola. He has a big family that includes his wife, two sons, 4 cats and 2 dogs. His other hobbies include being a season ticket holder to University of Iowa football.