IRS Issues Guidance Regarding Employee Retention Credit Termination

The IRS has issued guidance regarding the retroactive termination of Employee Retention Credit (ERC) starting from Oct 1, 2021, except for an employer who is a recovery startup business. Notice 2021-65 applies to employers that paid wages after Sept. 30 and received an advance payment of ERC for the 4th quarter of 2021. Employers that reduced deposits on or before Dec. 20, 2021, for wages during Q4 2021 and aren’t a recovery startup business will not be subject to a deposit penalty. However, failure to deposit penalties is not waived for these employers if they reduce deposits after December 20, 2021. If you have questions or need help, please do not hesitate to call us at (832) 295-3353. You can also set up an appointment with us at https://xqcpa-bookme.acuityscheduling.com/schedule.php. Last but not least, please like and share our daily posts! #business #IRS #taxes #tax #employeeretentioncredit