By Robert Jackson, CPA
Wednesday, March 3, 2021
Earlier this week, the IRS issued Notice 2021-20, which updates previously issued FAQs for the Employee Retention Credit (ERC). Updates were necessary due to the changes provided under the Consolidated Appropriations Act, which was signed into law back in late December. Among the 102 pages of text is a discussion of the long-awaited double dipping rule between the ERC and PPP Loan Forgiveness. Prior to the Consolidated Appropriations Act, an employer could not take the ERC if the employer (including certain related employers) also received a PPP loan. The Consolidated Appropriations Act permits employers who received a PPP loan to also take the ERC if they are otherwise eligible.
While the Notice does not alleviate all questions taxpayers and professionals have on the ERC, they do clear up some of the previous unknowns, such as what taxpayers should do if they are eligible for the ERC in 2020, and have already filed for loan forgiveness. The FAQs generally follow the format the IRS used on their website for the previous version of the FAQs.
Please contact your team at AGP to discuss any questions you may have on the Employee Retention Credit
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