Do You Have to Amend Tax Returns to Get the ERTC?

September 25, 2023
Dayes Law Firm

The Employee Retention Tax Credit, also referred to as the ERTC or ERC, was implemented as part of the Coronavirus Aid, Relief, and Economic Security (CARES) Act that was passed in March 2020, and is still available for some businesses to claim. But how does a business owner go about applying for the tax credit? Does it involve amending previous tax returns or filing new ones?

What is the ERTC?

The ERTC is a refundable tax credit that businesses can claim on qualified wages paid to their employees during certain time periods in 2020 and 2021. It is not a loan and does not have to be repaid.

The Employee Retention Tax Credit is for employers that experienced a full or partial suspension of business operations during 2020 or the first three quarters of 2021 due to government orders restricting specific activities, or if the business had a substantial drop in gross receipts in 2020 or 2021 compared to the same 2019 quarter. 

The ERTC was created to help business owners who endured the financial difficulties that came with the height of the COVID-19 pandemic but kept staff on payroll anyway. It has the potential to result in a refund of thousands of dollars per employee and could be a real financial boon for a business owner. 

Do You Have to Amend Tax Returns to Get the ERTC?

But how does one go about claiming this critical tax credit? It involves doing a look back at previous tax quarters and their coinciding tax returns to make a claim. 

As an employer, as long as you are eligible to claim the ERTC, you can amend previously filed Form 941 and retroactively claim it now. But there is limited time left to take this step; for all quarters in 2020, the deadline to apply for the ERTC is April 15, 2024. As for quarters in 2021, the deadline to apply for the tax credit is April 15, 2025.

Employee Retention Tax Credit refunds are claimed through an amended payroll tax return, Form 941-X, for quarters a business qualified to do so in 2020 and 2021. By retroactively completing Form 941-X, Amended Quarterly Payroll Tax Return, you could potentially receive thousands of dollars per employee and use that money for anything from paying off debt to hiring more employees or retaining great staff members, among other things. 

Getting ERTC Assistance from Dayes Law Firm 

A team of tax professionals experienced in navigating the Employee Retention Tax Credit application process can help you with any of your ERTC needs. At Dayes Law Firm, our team and our partners stand ready to assist business owners who are eligible to claim this credit and help them receive the ERTC funds they are entitled to. 

Dayes Law Firm can offer assistance with determining ERTC eligibility and applying for the credit as well as answer any questions you may have in a free, no-obligation consultation. We’ve already helped many business owners file for more than $250 million in refunds so far, and we’d be honored to help you and your business, too. 

We think we can prove to you why so many businesses have already turned to us for assistance with amending tax returns to get the ERTC. Please contact us by giving us a call at (800) 503-2000 and find out how we can walk you through the ERTC claims process today.