What Options Do Businesses Have if They Missed Claiming the ERTC?

October 24, 2023
Dayes Law Firm

Although it’s been several months since the last of the qualifying quarters for the Employee Retention Tax Credit (ERTC/ERC), business owners may still have options if they missed out on claiming the credit during that time period. If you haven’t already done so, there is still time to apply for the ERTC, but the deadline may be coming up sooner than you think. 

What to Do If You Missed Claiming the ERTC in Previous Eligible Quarters

The Employee Retention Tax Credit was first available for wages paid from March 13, 2020, to December 31, 2020. The Consolidated Appropriations Act, 2021 (CAA) extended the ERTC to include wages paid before July 1, 2021.

Then, the American Rescue Plan Act of 2021 (ARPA) extended the coverage period again to incorporate wages paid between July 1, 2021, and December 31, 2021. But the Infrastructure Investment and Jobs Act retroactively repealed the ERTC as of September 30, 2021. 

The only exceptions were for Recovery Startup Businesses that were still eligible through December 2021. It’s obviously long past that date, so what options do businesses have if they missed claiming the Employee Retention Tax Credit in previous eligible quarters

Retroactive ERTC Claims

Fortunately, business owners can still retroactively apply for the ERTC for qualifying quarters in 2020 and 2021.

To qualify for the ERTC for tax years 2020 and 2021, a business needs to have experienced what the IRS calls a “significant” decline in gross receipts compared with the same calendar quarter in 2019. It is available to employers that underwent either a full or partial shutdown of operations due to a governmental order related to the COVID-19 pandemic. 

The ERTC can only be claimed for quarterly payroll tax filings from 2020 and 2021 – it is not available for filings from 2022 or 2023. But if you are an eligible employer, you can file an amended Form 941X (Quarterly Federal Payroll Tax Return) to retroactively claim the ERTC for past tax quarters now.

For all quarters in 2020, the deadline to apply for the Employee Retention Tax Credit is April 15, 2024. As for quarters in 2021, the deadline is April 15, 2025. So, if you missed claiming the ERTC in previous eligible quarters, you have very limited time to take a look back at those past quarters and do so now. 

How Dayes Law Firm Can Help with the ERTC

If you’re unsure whether or not your business can apply for the Employee Retention Tax Credit, or you’re concerned about how little time there is left to claim your ERTC refund, the team at Dayes Law Firm may be able to help.

Our tax attorneys and other professionals can help you file the appropriate amended quarterly payroll tax returns on your behalf to retroactively claim the ERTC funds your business is allowed to apply for. Our clients have already received over $25 million in funds for Employee Retention Tax Credit claims so far, and we’d be more than happy to assist you and your business if you qualify, too. 

Our firm offers a free, no-obligation consultation to discuss any of your ERTC questions or concerns, so please don’t hesitate to get in touch if you want to talk through your business’s unique circumstances before committing to work with us. 

Please call (800) 503-2000 or contact us via the linked form to learn more about how we can assist you with the Employee Retention Tax Credit today.