IRS Updates ERC Income Tax Guidance
Earlier this month, the IRS provided new guidance on income tax issues through an update to the Employee Retention Credit (ERC) Frequently Asked Questions section. Included in the update was information on when to report income and timing considerations for the 2021 tax year. Specifically, it confirms that the amount of the ERC refund reduces the amount of wage expense on the income tax return for the year qualified wages were paid or incurred.