The current legislation pending on the house floor, which was already passed by the Senate, ends the popular Employee Retention Credit (ERC) at the 3rd Quarter of 2021. The House has now been arguing and negotiating their version of the $3.5T bill for the past month, to no avail.
The reason the Senate canned the credit a quarter early was to save money for its currently proposed social agenda.
A number of House Democrats recently sent a letter to Speaker Pelosi (D-CA), asking that the credit be retained for the 4th Quarter. The letter, led by Antonio Delgado (D-NY) and Stephanie Murphy (D-FL), states that the benefits of the credit are a “crucial lifeline” for small businesses. This letter followed another one by several former Senators and Congressmen also calling for the ERC to be retained.
It’s too early to say what will happen. The new administration is trying to get just about anything passed at this point.
The problem is that there have been whispers about shutting it down altogether.
Again, the new administration is focused on infrastructure and social issues rather than small business preservation. It’s possible that they would shut down the program further mandating that returns could not be amended past a certain date in the future. This would save them hundreds of millions of dollars that could be used for their new agenda.
If you haven’t signed up for our Employee Retention Credit Consulting and Preparation Program, I’d suggest you get the lead out. It could all end with the stroke of a pen.
Let me leave you with this.
We’ve received good news in the past couple of weeks. Most of the ERC’s that were amended and filed near the end of last March have funded. That’s excellent news, given the fact that it has only taken six months.
Given the backlog of returns currently being processed by the IRS, we’ve been told that it should be anywhere from six to nine months on average to receive payments.
Please make sure to let us know what’s happening. Whether you receive a payment or some sort of letter, we’ll need to know in case a response is necessary.
We’re also continuing to get good news on PPP Loan Forgiveness. Several of the larger loans we worked on between $1M and $2M have been completely forgiven.
If we completed the forgiveness paperwork on PPP1 and you would like us to handle PPP2, please get that information into us today.
We’re all going to get through this. Let’s get through it together.
Accounting Solutions Ltd. stands ready to complete our mission and purpose of protecting you, your family, and your business. Whether you need Employee Retention Credits, PPP Loan Forgiveness, Payroll Services, or Accounting and Tax Work, you have but to ask. I’m here and I remain,
Sincerely yours,
Chris Amundson
President
Accounting Solutions Ltd.
773-267-7500
www.AccountingSolutionsLtd.com
Note that the only professional services provided by Accounting Solutions Ltd. are those specified in a written communication from our office detailing the scope of services to be rendered and the terms and conditions applicable to the engagement.