IMPORTANT Employee Retention Credit UPDATE!
Wednesday, October 20, 2021 – The infrastructure bill currently awaiting a vote in Congress includes language which would terminate Employee Retention Credit (ERC) eligibility as of September 30, 2021.
We have discussed the Employee Retention Credit several times on our blog. Click on any of the articles below for more information:
Given the possibility that eligibility could be terminated as of September 30, 2021, LSWG is advising a wait & see approach regarding the fourth quarter 2021 ERC; i.e., do not claim the ERC for the fourth quarter of 2021 now by either filing Form 7200 and/or shorting your current 941 tax deposits.
Instead, wait and see whether the infrastructure bill becomes law. If it does not, you can retroactively amend your 941 to claim the ERC. However, if the bill does become law and you have already shorted your 941 deposits and/or received an advance payment of the ERC credit, you will most likely be subject to penalties and interest.
Bottom line: Wait & See.