Apply Before the ERTC Statute of Limitations Runs Out

July 10, 2023
Dayes Law Firm

If you are a business owner and have been advised that you can apply retroactively for the Employee Retention Tax Credit, you might want to get the process started sooner rather than later. You’ll need to apply before the ERTC statute of limitations runs out, and the ERTC deadlines are approaching quickly. 

What is the ERTC?

The Employee Retention Tax Credit, sometimes referred to as the ERTC or ERC, was created by the Coronavirus Aid, Relief and Economic Security (CARES) Act and signed into law in March 2020. It was meant to encourage businesses to keep employees on their payroll despite the financial strain of the COVID-19 pandemic and rewards them for doing so. 

The ERTC is a refundable credit that businesses can claim on qualified wages paid to their employees from March 12, 2020, through January 1, 2022. If your business suffered losses and faced government restrictions in 2020 and 2021, you might be eligible to apply for the tax credit. 

However, time is running out to do so. The ERTC statute of limitations is rather short, and it might be a good time to get a reputable tax professional involved to complete your application and get you the money your business is entitled to before it’s too late. 

ERTC Statute of Limitations

There is a statute of limitations involved when it comes to the ERTC. As an employer, you can still amend previously filed Forms 941 and qualify retroactively for the Employee Retention Tax Credit, but in the case of some 2020 returns, you have less than a year left to do so.

For the most part, employment tax returns for the year need to be filed in April, and the end of the first three-year ERTC statute of limitations – for 2020 – is April 15, 2024. That means the first ERTC deadline is just months away!

As for 2021, in general, the deadline to apply for the ERTC is April 15, 2025. However, for the third quarter of 2021, a special five-year statute of limitations applies, rather than the usual three-year rule, according to Bloomberg Tax. (Only Recovery Startup Businesses are eligible for the tax credit in the fourth quarter of 2021.) This essentially extends the time for the IRS to make adjustments for claims until April 15, 2027.

Call Dayes Law Firm

If all the ERTC deadlines and statute of limitations details seem complex or overwhelming to you as a business owner, calling a team skilled in dealing with the Employee Retention Tax Credit could be a good option for you. That’s where Dayes Law Firm comes in.

The team at Dayes Law Firm and our partners can help you decide if your business should apply for the ERTC and how long you have left to complete your application for the tax credit. We can offer you a free consultation to talk through any questions you may have, and you are under no obligation to work with our firm after the initial evaluation. 

Please contact us to see how we can help by advising you based on the unique circumstances of your business. The ERTC team at Dayes Law Firm is always available to discuss your situation, so please fill out the form on this page or give us a call to learn how we can assist you today!