At BrilTax, we’re committed to keeping our clients informed about the latest developments in tax law and IRS procedures. Today, we’re sharing important news about a new process that could affect businesses who used third-party payroll services to claim the Employee Retention Credit (ERC).
What’s Changing?
The IRS has announced a supplemental claim process designed to help third-party payers and their clients resolve incorrect ERC claims. This new process is particularly relevant for businesses that used payroll service providers to handle their ERC claims.
Why This Matters
If your business used a third-party payroll service to claim the ERC, and you’ve since determined that you might not be eligible, this new process provides a way to address the situation. It allows third-party payers to withdraw claims for some clients while maintaining claims for others who do qualify.
Key Point to Know
- This process applies to ERC claims filed on or before January 31, 2024, that haven’t yet been processed by the IRS.
- The deadline for submitting a supplemental claim is November 22, 2024.
- Only third-party payers can submit these supplemental claims, not individual businesses.
Who’s Eligible?
The supplemental claim process is for third-party payers who:
- Filed ERC claims for multiple clients using the payer’s Employer Identification Number
- Made claims on adjusted employment tax returns (Forms 941-X, 943-X, 944-X, or CT-1X)
- Have claims that haven’t yet been processed by the IRS
How BrilTax Can Help
Navigating the complexities of the ERC and this new supplemental claim process can be challenging. At BrilTax, we’re here to help. Our team of expert CPAs can:
- Review your ERC claim for accuracy and eligibility
- Liaise with your third-party payroll provider if necessary
- Provide guidance on the best course of action for your business
Don’t let uncertainty about your ERC claim keep you up at night. Contact BrilTax today for a comprehensive review of your situation and expert advice on how to proceed.
Remember, the deadline for these supplemental claims is November 22, 2024. Don’t wait to address any concerns about your ERC claim. Reach out to us today to ensure your business stays compliant and takes advantage of all available tax benefits.
