IRS Clarifies Rules on Employer Retention Credit Eligibility

In a news release issued on January 26, 2021, after the election and PPP2 Legislation was enacted, the IRS clarified the rules on ERC Eligibility. The press release can be found at this web address.

https://www.irs.gov/newsroom/new-law-extends-covid-tax-credit-for-employers-who-keep-workers-on-payroll

If you look midway through the release it clearly states that in order to qualify for the Employer Retention Credit, your entity must experience

“1. A full or partial suspension of the operation of their trade or business during this period because of governmental orders limiting commerce, travel or group meetings due to COVID-19”

Does this scare any of you as much as it does me? Who does this not apply to? Who didn’t have difficulties in operations due to a lack of travel or the ability to hold group meetings?

Forget the concept of being responsible and needing to prove that you are eligible. If you had difficulties because you couldn’t hold a meeting, it looks like you’re eligible for the credit. Let me know if you want me to get it for you. We’re now even allowed to amend.

Just when I thought things couldn’t get any stranger, we all go further down the rabbit hole. Where is Lewis Carol when we need him?

Let me leave you with this.

This is without question, comment, or doubt the oddest tax season ever. Did any of us actually think that any of this was possible?

I would suggest that all of you get some rest this weekend. Take some time and do something for yourself. Catch up on some reading, exercise, maybe watch your favorite old movie for the umpteenth time.

Then spend some time with your significant other and your kids. Put your arms around them and let them know how much they mean to you. These are scary times for everyone. Let them know that everything will be fine.

Try to forget about the strange world we now inhabit. Get some rest, because only whatever God you pray to has any idea what all of us are going to need to deal with on Monday.

We’re all going to get through this. Let’s get through this together.

Accounting Solutions Ltd. stands ready to complete our mission and purpose of protecting you, your family, and your business. If there is anything you need, whether you are a current client or not, you have but to ask. I’m here and i remain,

Sincerely yours,

Chris Amundson
President
Accounting Solutions Ltd.
773-267-7500

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