Employee Retention Credit: IRS Moratorium, Audits, and Withdrawing Claims

ERCs were authorized as part of the CARES Act and provided a 50 percent credit for qualified wages between Mar. 12, 2020, and Dec. 31, 2020. A full or partial suspension of operations or a significant decline in gross receipts could be eligible for this relief meant to keep employees on the payroll.

Since its initial implementation, the ERC has been revised by the Consolidated Appropriations Act, The American Rescue Plan Act, and the Infrastructure Investment and Jobs Act of 2021. There is also pending legislation to include the 4th quarter of 2021, which was eliminated in November 2021 under the Infrastructure Investment and Jobs Act.

The frequent changes are complex for practitioners to track; however, the savings are substantial. Savings can be as much as $5,000 per employee for 2020 and $28,000 per employee for 2021. Companies generally have until Apr. 15, 2024, to file amended returns to claim eligible credits for 2020, and until Apr. 15, 2025, to file amended returns to claim eligible credits for 2021. Tax advisers need to understand how to take advantage of these credits for eligible businesses.

Listen as our panel of ERC experts explains the particulars of the ERC for tax practitioners.

1. Employee Retention Credits: introduction
   1. Section 2301 of the CARES Act
   2. Revisions to the ERC
   3. ERTC Reinstatement Act (Proposed)
2. Eligible employer
   1. Reduction in gross receipts
   2. Full or partial suspension of business operations
3. Qualified wages
   1. Limitation for large employers
   2. Limitation on wage increases
4. Claiming the ERC
5. IRS challenges

The panel will cover these and other critical issues:

• The impending deadline for applying for ERCs
• Changes made to ERC by the Consolidated Appropriations Act
• IRS challenges to ERC claims
• Guidance in IRS Notices 2021-20, 2021-49, and 2021-23

Learning Objectives

After completing this course, you will be able to:

• Identify which employers are the best candidates for ERCs
• Recognizes the changes made to ERCs since its inception
• Determine who qualifies as a "qualified employer"
• Ascertain when a governmental order results in the full or partial suspension of business
• Establish when there is a significant decline in gross income

• Field of Study: Taxes
• Level of Knowledge: Intermediate
• Advance Preparation: None
• Teaching Method: Seminar/Lecture
• Delivery Method: Group-Internet (via computer)
• Attendance Monitoring Method: Attendance is monitored electronically via a participant's PIN and through a series of attendance verification prompts displayed throughout the program
• Prerequisite: Three years+ business or public firm experience preparing complex tax forms and schedules, supervising other preparers or accountants. Specific knowledge and understanding of individual income taxation, including itemized deductions, individual income tax credits, net operating loss limitations including carrybacks and carryforwards.

Strafford Publications, Inc. is registered with the National Association of State Boards of Accountancy (NASBA) as a sponsor of continuing professional education on the National Registry of CPE Sponsors. State boards of Accountancy have final authority on the acceptance of individual courses for CPE Credits. Complaints regarding registered sponsons may be submitted to NASBA through its website: www.nasbaregistry.org.

IRS Approved Provider

Strafford is an IRS-approved continuing education provider offering certified courses for Enrolled Agents (EA) and Tax Return Preparers (RTRP).