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“This is a game-changer,” stated Eric Hylton, nationwide director of compliance for Alliantgroup, a agency that has been reviewing ERC claims for different tax professionals.
“I’m really shocked at a few of the horror tales we have been seeing,” stated Hylton, who’s a former IRS commissioner for the company’s small business and self-employed division.
It’s a ‘mulligan second’
If you’ve got neither acquired an ERC refund nor cashed your ERC refund examine, there’s nonetheless time to withdraw your submitting, in accordance to the company. You could qualify when you meet three circumstances: you made the declare on an adjusted employment tax return, solely modified your submitting for the ERC and need to withdraw all the declare.
You can discover the whole particulars on eligibility and the way to withdraw your declare at IRS.gov/withdrawmyERC.
“It’s a mulligan second,” stated Dean Zerbe, nationwide managing director at Alliantgroup. He stated the withdrawal option is a chance to repair errors earlier than the IRS catches them.
Currently, there’s an IRS backlog of unprocessed ERC filings. As of Oct. 11, the company estimated a backlog of 849,000 Forms 941-X, which incorporates ERC claims.
Small companies ought to take the chance to “sharpen their pencil” and overview their pending ERC filings with a tax skilled, Zerbe stated, pointing to the strict eligibility requirements. “Business house owners cannot simply whistle by the graveyard.”
“Think lengthy and laborious about what you are doing right here as a result of the IRS goes to be throughout this,” he added.
How to deal with processed ERC claims
If the IRS already processed your ERC declare and also you cashed the refund examine, Hylton nonetheless recommends reviewing the submitting with a tax skilled to see if an modification is important.
For instance, it is potential you solely certified to obtain the ERC for two quarters however claimed the credit for 4 or six quarters, he stated. Whether you want to make a minor change or main correction, it’s vital to “deal with the difficulty as quickly as potential,” Hylton stated. “You need to be forward of them.”
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