As a result of the Stimulus Package money from the past couple of years, we’re dealing with something which is new in my 31 year career. We’re now doing amendments on amendments.
As I have written in the past, if you were able to claim the Employee Retention Credit on any of the payroll quarters of 2020, we are required to amend. This isn’t optional. We have to do this whether you’ve received the money or not.
In many of these cases, these are returns that were already amended once because the clients also received the EIDL advance. After these returns were completed last year, we found out that this advance was non-taxable.
This created a situation where we had to amend last year, and given the new IRS rules, we now have to amend the same returns a second time. These amendments on amendments will probably cause processing problems, given the tardiness the IRS is exhibiting in processing returns.
I can’t even imagine how many of these returns are going to result in a processing mistake. We have to amend these returns in order to get the equity portion of your balance sheet right. Without this, we can’t properly process this year’s returns.
If you get a letter, don’t freak out. Get it over to us, and we’ll handle it the way we handle everything else.
I don’t want anyone to jump the gun, automatically thinking we made a mistake, if you get a letter.
Let me leave you with this.
I understand your frustration with this situation. Believe me when I say that the last thing on this planet I need to do is amend an extra hundred or so returns this tax season. The time involved is simply insane.
Amending a return requires me to complete essentially three or four returns. We have to submit the return as originally filed, the return as amended, and the federal and state “X” paperwork explaining the change.
In many instances, it takes more time to do an amendment than it does the original return. And it’s not like I have anyone else here who can do this.
It’s very complicated tax work that falls directly to me. Understanding the budget restraints on many of these, I’m not even billing all of the time involved.
Again, I understand your frustration. Can I do a Bill Clinton and say, “I feel your pain?”
Please understand that this is a case of, “We’ve danced, and now we have to pay the piper.” All of this stimulus money came with a price and the bill is now coming due.
I will continue to try to write my column three times weekly. Given the time constraints of tax season, I will probably be unable.
But go through tax season knowing that you aren’t doing this alone.
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.