ERC

[MGC94]

My client had a law firm do their ERC 941X and paid them $81,000 to do it. 

What I find odd is they did not do it for Q3 2020 or Q4 2021

What was filed was Q1 2020 Q2 2020 AND Q4 2020

Q1 2021 Q2 2021 AND Q3 2021 

Is it too late to file for Q3 2020 ERC? Was Q4 2021 and eligible date?  

[IRonMaN]

Did they qualify for those quarters?  Actually I should ask, did they qualify for any of the quarters?  That ERC money brought a lot of greedy, shady people out of the woodwork.

[MGC94]

Yes, they did qualify for the quarters they got. Nothing is different for the other 2 questers so I'm wondering why it wasn't done and if it's too late? 

[Terry53029]

Here is a link from IRS for latest update on ERC claims. (6/20/2024)

https://www.irs.gov/newsroom/irs-enters-next-stage-of-employee-retention-credit-work-review-indicate...

The current deadlines to file ERC claims are April 15, 2024, for the 2020 tax year and April 15, 2025, for the 2021 tax year. Under the Act as currently written, new ERC claims are prohibited after Jan. 31, 2024.

[qbteachmt]

"Was Q4 2021 and eligible date?"

The IRS knows:

https://www.irs.gov/newsroom/employee-retention-credit-2020-vs-2021-comparison-chart

[sjrcpa]

"Under the Act as currently written, new ERC claims are prohibited after Jan. 31, 2024."

@Terry53029 As far as I know, that Act, which you don't name, never passed.

[TaxGuyBill]

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@MGC94 wrote:

Nothing is different for the other 2 questers

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Yes there is.

The third quarter for 2020 presumably had different income and presumably so did the third quarter of 2019 (which is the reference point for the 50% test).

The fourth quarter of 2021 had different rules and it is likely your client did not qualify.

[Terry53029]

@sjrcpa you are correct the new law is " Tax Relief for American Families and Workers Act of 2024" It passed the house in January, and is in the senate, but has not become law yet. 

[sjrcpa]

Not to mention if the client had PPP loans. Can't claim ERC on covered wages under the PPP Loans.

EDIT: This is to supplement TaxGuyBill's post. The threading here is awkward.

[IRonMaN]

But those are just silly little rules.  Those kind of things never stopped the ERC factories from filing forms to get the client back the money they are owed.🙄

[PATAX]

I would ask the law firm those questions, or ask your client to ask them those questions.

[qbteachmt]

Or, show the client the IRS table for each type and time of eligibility, and tell them to refer to the info they provided to the form factory (oh, excuse me: law firm) and the forms as returned by the law firm. They should be able to answer the question. They paid for the service. Did they get their money's worth?