Must You Amend Your Income Tax Return for ERTC? 

 October 6, 2023

By  Jace W Campbell, CPA

income tax return for ERTC

The world of taxes and credits can often feel like a labyrinth. From understanding qualifications to dealing with nuances in language, it’s a complex task that requires diligence and expertise…especially when discussing the Employee Retention Tax Credit (ERTC). As we explore this topic, it’s important to remember: you are ultimately responsible for these tax credit claims.

Understanding the Employee Retention Tax Credit

So what exactly is the Employee Retention Credit? A full explanation of this program with its many intricacies could consume dozens of pages on its own – and admittedly, it would be very dull and tedious text. To make things easier, let’s break this down with enough detail to get the gist of it…

An Overview of ERTC

The ERTC is a refundable tax credit designed by Congress as part of the Coronavirus Aid, Relief, and Economic Security (CARES) Act. Its goal? To incentivize employers to keep employees on their payroll during periods where business operations were impacted due to COVID-19…

Who Qualifies for the ERTC?

Determining ERTC qualification is often a complex process. It involves not just understanding the overarching eligibility criteria but also interpreting how it applies to your unique business circumstances. Generally, businesses may qualify for ERTC if they experienced a significant decline in gross receipts or were subject to a government shutdown order… but there’s more to it.

Qualification Based on Business Impact

According to language from a Notice by the IRS, even businesses that didn’t necessarily experience a shutdown order could still be eligible for ERTC. If an employer had to modify its operations significantly due to compliance with governmental orders, and those modifications had more than a nominal impact on the business, they could potentially qualify…

However, every taxpayer’s situation is unique. This means that even businesses subject to identical governmental orders might not all qualify for ERTC due to differences in their respective facts and circumstances.

Also read: Employee Retention Credit Supply Chain Disruption

Recognizing Lies and Deceptions

In the quest to leverage financial opportunities such as the ERTC, it’s vital to be vigilant of potential lies and deceptions. As firms scramble to position themselves as ERTC experts, it’s easy to get drawn into misleading claims. After all, who wouldn’t want to trust an expert providing assurance and transparency?

The Allure of Advertisements and Promises

In this age of information, you’re likely inundated with offers from various firms claiming expertise in ERTC. From flashy ads promising lucrative returns to testimonials singing praises, these tactics can create a confusing landscape…

You may even observe peers receiving refunds, which can naturally spark curiosity and desire for similar outcomes. However, amidst all this noise, it’s important to pause and ask yourself: “Is this too good to be true?” or “Do I have time for the complexity involved?”…

Decoding Mixed Messages

As discussions about ERTC become more prevalent among business owners, mixed messages are inevitable. One accountant may tell you that you don’t qualify; another might admit lack of knowledge altogether…

Likewise, stories shared by friends and colleagues – whether success stories or tales of scams – can add further confusion. Amidst this chaos of conflicting information, how do you discern fact from fiction?

Building Trust Through Diligence

This brings us back full circle: recognizing lies and deceptions is crucial when exploring financial opportunities like ERTC. Rather than taking any claim at face value, scrutinize its validity. Check credentials meticulously; look beyond glossy advertisements; cross-verify information provided by peers…

Remember: yearning for a trustworthy relationship with an expert is natural – but trust should be earned through consistent demonstration of expertise and integrity… not just through promises made in a high-pressure sales pitch.

By keeping these principles at the forefront of your mind while navigating the often-murky waters of ERTC, you can better protect your business from potential scams and ensure your financial decisions are informed and prudent.

Choosing JWC ERTC Advisory CPA

In the current landscape where even the IRS is cracking down on ERC promoters due to rampant ERTC fraud, finding a trustworthy advisory becomes critical. This is where JWC ERTC Advisory CPA shines…

A Trustworthy Partner Amidst Uncertainty

In these times of fear and uncertainty, JWC ERTC Advisory provides a steady hand to guide you through the complex process of amending income tax returns for ERTC claims…

Independent Eligibility Review

Even if you’ve previously filed for ERTC, questions may linger about your eligibility. JWC offers an independent eligibility review, giving you peace of mind that your claims are valid and accurate…

At the end of the day, knowledge is power – especially when navigating complex terrain like that of Employee Retention Tax Credit (ERTC). Whether you’re doing some Googling on your own or a CPA figuring out how to serve your clients most efficiently and ethically, remember this: always do your due diligence… And don’t let any so-called “expert” convince you otherwise.

Jace W Campbell, CPA

Jace founded JWC ERTC Advisory CPA in March 2021 as the nation's first and only public accounting firm focused solely on ERC . . . and nothing else. He has personally signed over 9,000 ERTC claims and is proud to be executing these claims conservatively, and how intended by Congress.

He has a passion for educating clients so they can make the best decision for themselves.  If you read articles and watch videos that Jace produced in 2021, his approach is the same now as it was then.

While other firms pivot their messaging to comply with new IRS guidance, Jace continues preaching the same conservative principles that have helped clients recover hundreds of millions . . . while sleeping easy at night.

related posts:

Can You Claim Employee Retention Credit in 2023?

Can You Claim the Employee Retention Credit in 2022?

Employee Retention Credit Scams: What You Need to Know

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