Employee Retention Credit updated FAQs

The AICPA town hall on April 3 highlighted three recent Employee Retention Credit (ERC) FAQs that were released by the IRS on March 20.  Click here to access the three FAQs under the header “Income tax and ERC.”  

Q1: Should I have reduced my wage expense on my income tax return when I filed the ERC? 

Q2: I claimed the ERC but didn’t reduce my wage expenses on my income tax return. The ERC claim was paid in a subsequent year. What do I do? 

Q3: What can I do if my ERC claim was disallowed, and I’d already reduced my wage expense on my income tax return by the amount of ERC I expected? 

For more information, see slides 35 – 38 from the AICPA town hall presentation.  This Journal of Accountancy article also addressed the topic.