Following up on a letter it sent in January, the AICPA is again urging Treasury and the IRS to issue immediate guidance related to Section 206 of the Taxpayer Certainty and Disaster Relief Act of 2020 (TCDRA), with specific focus on the employee retention credit (ERC).
In its most recent letter, the association is recommending the IRS first and foremost provide authoritative guidance beyond just FAQs on both the 2020 and 2021 ERC. The letter also requests ERC clarification as to wages paid to S corporation owners and their actively employed spouses, as well as the possibility of filing adjusted employer’s quarterly federal tax returns or claims for refunds related to the ERC in previous quarters. While the IRS did release guidance on the ERC, the AICPA believes the information was insufficient on the topics of S corporations and the filing of amended form 941s.
“The employee retention credit is complex, and there are high dollar amounts at stake,” says Kristin Esposito, AICPA director of tax policy and advocacy. “We are pleased that the guidance was released as a notice because taxpayers needed guidance they could rely on.”