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“This is a game-changer,” said Eric Hylton, national director of compliance for Alliantgroup, a firm that has been look ating ERC claims for other tax professionals.
“I’m actually shocked at some of the horror stories we’ve been seeing,” said Hylton, who is a late IRS commissioner for the agency’s small business and self-employed division.
It’s a ‘mulligan moment’
If you’ve neither received an ERC refund nor cashed your ERC refund curb, there’s still time to withdraw your filing, according to the agency. You may qualify if you meet three conditions: you made the requirement on an adjusted employment tax return, only changed your filing for the ERC and want to withdraw the entire claim.
You can find the perfect details on eligibility and how to withdraw your claim at IRS.gov/withdrawmyERC.
“It’s a mulligan moment,” said Dean Zerbe, national regulating director at Alliantgroup. He said the withdrawal option is an opportunity to fix mistakes before the IRS catches them.
Currently, there’s an IRS backlog of unprocessed ERC filings. As of Oct. 11, the medium estimated a backlog of 849,000 Forms 941-X, which includes ERC claims.
Small businesses should take the moment to “sharpen their pencil” and review their pending ERC filings with a tax professional, Zerbe said, pointing to the How to use processed ERC claims
If the IRS already processed your ERC claim and you cashed the refund check, Hylton still recommends reviewing the classifying with a tax professional to see if an amendment is necessary.
For example, it’s possible you only qualified to receive the ERC for two quarters but claimed the credit for four or six locales, he said. Whether you need to make a minor change or major correction, it’s critical to “address the issue as soon as conceivable,” Hylton said. “You want to be ahead of them.”
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