Latest on ERC: File Legitimate ERC Claims for Your Client

OVERVIEW

In mid-September, the IRS announced a moratorium on processing new employee retention credit (ERC) claims through at least December 31, 2023. Tax professionals and businesses should welcome this change, as the program has been overrun with wrongful claims (up to 95% wrongful claims recently, according to the IRS).

With this action, tax pros and businesses may think ERC is dead, or be afraid of putting in claims. One thing to be clear on is, the program is still active. And, a legitimate claim is not a scam. There’s no reason for a business that legitimately qualifies not to apply. 

This webinar provides details of the history of the ERC, who qualifies, and what you can do now to help small businesses take advantage of what might be a substantial cash refund from the IRS.

WHY SHOULD YOU ATTEND?

This webinar covers the moratorium in detail, as well as recent IRS guidance on supply chain disruptions, and other “what’s new” topics. 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. Details of the withdrawal program have been released but we are still waiting on the amnesty program. We then discuss aspects of qualifying for ERC: what is a shutdown? What is the gross receipts test? Who is a recovery startup? This webinar is kept “up-to-the-minute” so anything new that comes along will be a part of the presentation.

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 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.
• MORE – anything new with ERC will be discussed as well!

AREAS COVERED

Major Topics Covered:

• What’s New: IRS Chief Council Memorandum, FAQs, and Enforcement
• Ways to Qualify
• What size of employer qualifies
• How to calculate the credit
• How to claim the credit (Form 941-X)
• Paperwork -- what is the audit period?
• Scenario Analysis
• More on Shutdowns
• Gross Receipts Test
• PPP Loans, FFCRA Wages
• Tax Deductions
• Retroactive Claims
• Ethics Discussion

TOPIC BACKGROUND

The Employee Retention Credit (ERC) has emerged as a crucial lifeline for businesses navigating the economic challenges posed by global events. The ERC, a key provision of various stimulus packages, is designed to encourage businesses to retain employees during times of economic uncertainty. As the regulatory environment surrounding the ERC evolves, tax professionals must remain vigilant in understanding the nuances of eligibility criteria, calculation methods, and compliance requirements to ensure their clients maximize the potential benefits.