ERC Employee Retention Credit Expenses paid to consultants and timing of deduction

swiztaxpro · ‎06-26-2023

Hi, I can't find any rules on the timing of deduction for fees paid to collect the ERC refunds. Is there a rule anywhere that would allow the expense to offset the refund received? Or is it professional fees in the year paid?

qbteachmt · ‎06-26-2023

Year paid.

They already have the offsetting credit; it's part of wage/tax reduction.

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swiztaxpro · ‎07-14-2023

The credit is income via wage expense reduction in year wage was paid, 2020 or 2021. The expense to collect that credit is large, and should be used as an expense to receive income in that year as well. I can't find any rules stating this is ok but looking for one.

sjrcpa · ‎07-14-2023

Only ask once.

https://proconnect.intuit.com/community/lacerte-tax-discussions/discussion/erc-employee-retention-cr...

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