On October 22 the Internal Revenue Service (IRS) released guidance in the form of frequently-asked questions (FAQs) on the new Employee Retention Tax Credit (ERTC) compliance provisions. The new compliance provisions were enacted last summer in the tax/spending cuts reconciliation bill that was signed into law on July 4.
The FAQs relate to the limitation on credits and refunds for ERTCs claimed for the third and fourth quarters of 2021 that were filed after January 31, 2024. The IRS said, “The FAQs discuss the limitation generally, when a claim is considered to be timely filed, and what appeals rights are available if an ERTC claimed on a return is disallowed.”
Prospects: Many NAIFA members and their clients claimed the ERTC, and some are still embroiled in the intricacies of making sure their claims are valid. This guidance should prove helpful.
NAIFA Staff Contact: Jayne Fitzgerald – Director – Government Relations, at jfitzgerald@naifa.org.