How Can a Business Amend Tax Returns to Claim the ERTC?

September 15, 2023
Dayes Law Firm

The Employee Retention Tax Credit, also referred to as the ERTC or ERC, is a tax credit for previous tax years during the start of the COVID-19 pandemic. In order to get the credit for eligible 2020 and 2021 quarters, business owners need to retroactively claim it. Fortunately, there is a way for a business to amend its tax returns to claim the ERTC.

Amending Tax Returns to Claim the ERTC if It Was Originally Missed

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. (However, only Recovery Startup Businesses are eligible for the tax credit in the fourth quarter of 2021.)

If your business experienced financial losses and faced government restrictions in 2020 and 2021, you might be eligible to apply for the tax credit. But time is running out to do so, since the end of the ERTC statute of limitations for 2020 is April 15, 2024, and businesses have to apply for the ERTC for 2021 before April 15, 2025.

January 2022 is pretty far in the rearview mirror by now, and many businesses are already thinking ahead to prepare taxes for this year. But a business owner can still amend their previous tax returns to claim the Employee Retention Tax Credit for 2020 and 2021 if they initially missed out on claiming it.  

As an employer, you can still amend previously filed Forms 941 and qualify retroactively for the Employee Retention Tax Credit. The ERTC lookback period lets businesses file for the tax credit for up to three years after they filed their original tax return for the year in question. 

Applying Retroactively for the ERTC 

You will need to compile certain documents to apply for the ERTC and potentially get a refund when you amend your 2020 and 2021 tax returns. 

As a business owner, you’ll need payroll summary reports and affiliated documentation regarding your number of employees and what time of employee they are (full-time equivalent versus part-time staff), along with any other documentation on compensation for your employees. All of that will be necessary to file an amended tax return and make an ERTC claim for eligible quarters. 

Ultimately, you will file an amended Form 941X (Quarterly Federal Payroll Tax Return) to claim the ERTC retroactively. With that form and all of your documentation, the IRS will be able to consider your claim. 

Dayes Law Firm and the ERTC

The Employee Retention Tax Credit team at Dayes Law Firm has already been involved in filing for more than $250 million in refunds on behalf of many businesses, and we are still taking on new clients. We’d be more than happy to help you and your business as well!

Our team can assist with compiling all the documents you need to prove you can file an amended tax return and qualify for an ERTC refund. We have years of tax assistance experience and the resources to help you and your business claim the tax credit retroactively and before upcoming ERTC deadlines.

Please contact us today to see how Dayes Law Firm can help you and your business amend previous tax returns and claim this important credit. Call (800) 503-2000 to learn more.