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IMPORTANT EMPLOYEE RETENTION CREDIT UPDATE Attention to those who have claimed ERC! Recently, the Internal Revenue Service provided updated guidance for taxpayers on the Employee Retention Credit. The March 20 guidance from the #IRS detailed how taxpayers who claimed ERC should have handled the reporting of wage expenses on their tax returns. According to the guidance, the “amount of your ERC reduced the amount that you are allowed to report as wage expense on your income tax return for the tax year in which the qualified wages were paid…” The IRS made clear that taxpayers can amend their income tax return in different ways to reduce the amount of the original wage expense if that adjustment has not already been made. However, if a taxpayer claimed the #ERC (with the credit paid in a later year) and didn’t reduce their wage expenses on their tax return, it wouldn’t be required to file an amended return. “Instead, you can include the overstated wage expense amount as gross income on your income tax return for the tax year when you received the ERC,” the IRS said. In addition, if a taxpayer’s ERC claim has been disallowed, and wage expenses have already been reduced for the same year the credit was claimed, a taxpayer may increase their wage expense on their income tax return by the same amount it was reduced when the taxpayer made the initial claim. alliantNational’s team of tax professionals and former #IRS executives are here to help taxpayers navigate the continued complexities surrounding #ERC and can work to ensure that previously filed claims were filed properly. You can find the IRS’s https://lnkd.in/eZkH677K and schedule an appointment to talk to one of alliantNational’s tax professionals by contacting us at: https://lnkd.in/gp3qc8MS #ERC #TaxLaw #IRSCompliance #TaxStrategy #IRS #TaxNews Steve Miller Matthew Noll Shane T. Frank Jeremy Fingeret Donald Sniezek Sam Keegan Dhaval Jadav John Dies Wilbur E. Suggs Matthew Spradling Alek Hernandez Dean Zerbe alliantgroup David Kianpour Matt Hunter Oscar Carrillo