How ERTC Tax Attorneys Aid in Amending Past Tax Returns 

January 24, 2024
Dayes Law Firm

At the height of the COVID-19 pandemic in 2020, the federal government created the Employee Retention Tax Credit (ERTC) to help businesses keep employees on their payroll. Since then, the ERTC — also known as the Employee Retention Credit (ERC) — has been the subject of changing regulations, increased IRS tax audits, and scams. 

Perhaps you’ve heard about these issues and are considering consulting ERTC tax attorneys about a claim you already filed. Or perhaps you never applied for the ERTC but are wondering if you can still do so before time runs out. In either case, ERTC tax lawyers can answer your questions and help you make the appropriate filings.

Read on to find out more about how law professionals, like the ERTC attorneys at Dayes Law Firm, can assist you in filing adjusted tax returns.

Amending Tax Returns for ERTC Not Yet Claimed

Businesses that meet the ERTC eligibility criteria can apply for a credit for the tax years 2020 and 2021. Even though both years have passed, the statute of limitations for amending returns remains open. You have three years from the date of filing to file an adjusted tax return, including claiming the ERTC. This means that you have until April 15, 2024, to claim the 2020 credit and until April 15, 2025, to claim the 2021 credit.

ERTC tax attorneys can help at every step along the way. This includes:

  • Evaluating whether your company meets ERTC eligibility requirements
  • Calculating your qualified wages to determine your correct credit amount
  • Preparing the required documentation to support your case

In addition, experienced tax professionals can help you with IRS representation for ERTC inquiries and audits, which are surging due to the agency’s increasing focus on fraudulent claims. If you need to withdraw an ERTC claim, a tax attorney can help you navigate IRS regulations around withdrawing an incorrect form and submitting a corrected ERTC claim.

Amending Tax Returns for ERTC Already Claimed

Although the ERTC has been a valuable lifeline for many businesses impacted by the pandemic, it also created an opportunity for unethical scammers. These con artists have used a variety of techniques to trick unsuspecting employers. Some have charged companies upfront for a credit they never received, others have taken a cut of the claim that companies eventually have to pay back, and yet others have told companies that there is no harm in applying for credits they may not qualify for.

Due to the large number of fraudulent and inaccurate applications, the IRS has stopped processing new ERTC claims and increased the audits of current claims. 

Unfortunately for ERTC scam victims, inaccurate filings have consequences. If your company erroneously claimed the credit, you could have to pay it back, plus interest and penalties up to 75%. The agency has also opened a pathway for companies to withdraw ERTC applications they may have made in error — without charging interest and penalties.

How ERTC Lawyers Can Help You

Employee Retention Tax Credit attorneys can review your case and determine what to do. Different processes apply to withdrawing or amending tax returns depending on whether you have already applied for the credit, whether the IRS has already issued your refund, whether you have already cashed or deposited your check, and whether your case is currently under audit. 

For more information about filing an amended tax return for ERTC claims, contact the experienced ERTC tax attorneys at Dayes Law Firm. Whether you’re looking to apply for the ERTC for the first time or you want to amend your return to adjust your credit amount, Dayes Law Firm can help. 

Call us today at 800.503.2000 for a free consultation.