Level 2

Amending for ERC late

Forum|Forum|1 year ago
March 5, 2025
1 reply
6 views

I have a client that received ERC for 2020 but never amended their 1120-S. They also have available 179 expense after adding back wages for the ERC. I think I can still amend the 2020 return to show the ERC but will the service allow me to take the additional 179 expense made available? And will I have to paper file the amended return because it is outside the deadline? Is there a better course of action? Thanks for your help!

Practice Advice

sjrcpa

Level 15

Yes you would need to paper file.

Yes you can use the additional Section 179. Did it get used as a carryforward in 2021, 2022, or 2023?

Consider whether you want to file the amended 2020 return because technically as of today, 3/12/25, the statute of limitations has run on 2020 returns.

The more I know the more I don’t know.

sjrcpa

Level 15

UPDATE:

See Income Tax and ERC Q2 issued yesterday 3/20/25. Riding out the statute doesn't appear to be a viable option.

Frequently asked questions about the Employee Retention Credit | Internal Revenue Service

The more I know the more I don’t know.

T

TaxGuyBill

Level 15

@sjrcpa wrote:

Riding out the statute doesn't appear to be a viable option.

Frequently asked questions about the Employee Retention Credit | Internal Revenue Service

FAQs don't have any 'official' authority. In my opinion, we need to stick with Notice 2021-49.

Sign up

Login with SSO

Let's get you signed in

Login with SSO

Scanning file for viruses.

This file cannot be downloaded