Something that a lot of people don’t realize is that it isn’t too late to file for the Employee Retention Tax Credit (ERC). A reoccuring question that we come across here at Century Concepts pertains to the deadline for claiming the ERC, a question that seems to be on the minds of many as evidenced by discussions on the ERC subreddit and various YouTube comment sections.
However, finding a straightforward answer can be challenging due to outdated information available online. To clarify, there are two key deadlines for the Employee Retention Credit: April 15, 2024, for all quarters in 2020, and April 15, 2025, for all quarters in 2021.
For purposes of claiming the ERC, employers must rectroactively amend their 941s by submitting a Form 941-X. A review of the IRS instructions for Form 941-X reveals a section titled “Is There a Deadline for Filing Form 941-X?” The document clearly states that overreported taxes on a previously filed Form 941 can be corrected if you file Form 941-X within three years of the date Form 941 was filed or two years from the date the tax reported on Form 941 was paid, whichever is later. Similarly, underreported taxes can be corrected if Form 941-X is filed within three years of the date the Form 941 was filed.
It’s important to note that for the purpose of these limitations, Forms 941 for a calendar year are considered filed on April 15 of the succeeding year if filed before that date. This rule is reinforced in Section 6513 of the Code, subsection (c), where it states that if a return for any period ending with or within a calendar year is filed before April 15 of the succeeding calendar year, such return is considered filed on April 15 of the succeeding calendar year.
In practical terms, this means that although the Form 941 for the second, third, and fourth quarters of 2020 were originally due on July 31, October 31, and January 31 respectively, all these returns are considered filed on April 15, 2021. This sets the three-year statute of limitations for amending any of those returns at April 15, 2024. As mentioned in the instructions to Form 941-X, any corrections to the ERC for the period from March 13, 2020, through March 31, 2020, should be reported on Form 941‐X filed for the second quarter of 2020.
In conclusion, it’s never too late to file for the ERC, provided you are aware of the deadlines and procedures. Should you require assistance, do not hesitate to consult with a tax professional. We at Century Concepts are always here to help!
