The IRS has issued two major pieces of guidance on the employee retention credit (ERC) in recent weeks, Notice 2021-49 and Revenue Procedure 2021-33, which advisers working with clients to maximize the credit they can qualify for need to understand.
This course features a live instructor and has been specifically designed for the NJCPA.
Any tax practitioner advising clients who could potentially claim the ERTC
In this session we’ll look at the long-awaited IRS ruling on the ERC for shareholders holding a controlling interest, the answer to whether obtaining the credit for wages paid in 2020 will require amending 2020 income tax returns, dealing with PPP loan forgiveness when computing the revenue limits and other items covered by this guidance.
- How the bar on claiming the ERC for wages paid to relatives of direct and indirect controlling interest holders interacts with the ownership rules of IRC §267(c) to result in the no living relatives rule.
- The IRS’s view of which income tax return(s) must have a deduction reduced for wages paid when using a Form 941-X to claim the employee retention credit.
- The safe harbor method allowed for excluding forgiveness of PPP loans and certain other federal aid programs from gross receipts to qualify for the ERC.
- How tips given by customers in a restaurant impact the calculation of the restaurant’s employee retention credit (and it’s news your restaurant clients will probably like).
- What is a recovery startup business and how do you compute the employee retention credit for one?
- Does making (or not making) the alternative quarter revenue election in one quarter bind the taxpayer for subsequent quarters?