Nov 9, 2023
The employee retention credit (ERC) continues to be a topic of conversation amongst taxpayers and their trusted advisers. Now that the IRS has placed an immediate moratorium on processing new claims to at least the end of 2023, additional considerations and challenges have manifested.
Justin Elanjian, CPA, Managing Director — Disputes, Claims & Investigations, Stout, chats with April Walker, CPA, CGMA, Lead Manager — Tax Practice & Ethics, AICPA & CIMA, and shares best practices for navigating the current ERC environment.
What you’ll learn in this episode
- Current ERC developments and how Justin is assisting his clients (0:50)
- Tips for taxpayers who have already claimed the ERC (4:55)
- How to advise clients contemplating withdrawing their claim (10:31)
- Advice for helping clients that have not yet filed for the ERC (16:22)
- Statute of limitation issues and recommendations to consider (19:50)
- Office of Professional Responsibilities (OPR) guidance around professional responsibilities around claims (26:23)
- What Justin is seeing in ERC examinations (33:05)
- Final thoughts (41:34)
- A page from Justin’s travel journal (43:45)
Related resources
- ERC guidance and resources — The rules to be eligible to take this refundable payroll tax credit are complex. This AICPA resource library will help you understand both the retroactive 2020 credit and the 2021 credit.
- ERC suspended: What happens next | Tax Section Odyssey — October 16 has sunset. Tune in to this podcast to hear fellow CPA practitioner Brandon Lagarde’s experience with the 2023 extension season and what to expect in 2024.
- Employee Retention Credit (ERC): Fact or Fiction? — Use this guide to educate yourself and others on common misconceptions surrounding the ERC.
- Employee Retention Credit Decision Tree — Download the ERC decision tree to help you with various decision points when working with clients to protect yourself/your firm from significant risk.
IRS resources
- IR-2023-169 — IRS news release on Sept. 14, 2023, ordering the immediate stop to new ERC claim processing.
- IRS ERC resource center — IRS hub for ERC information, including links to guidance, FAQs and the latest news.
- ERC eligibility checklist: Help understanding this complex credit — IRS chart is used to help taxpayers figure out if they may be eligible for the credit. Use this chart if you are considering claiming the credit or have already submitted a claim to the IRS.