It seems very clear that any ERC reimbursement will cause an amended return to be filed for the year that the quarters refunded relates to. But what about the interest paid. Is the interest paid only for current year or the amended year?
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Nobody has an opinion, please help. Must get these amended returns done. Interest income alone is $45,000 per year.Last edited by BOB W; 07-16-2023, 05:01 PM.This post is for discussion purposes only and should be verified with other sources before actual use.
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In opinion, it goes on the current year return.
With that being said, I read a post on another forum and a highly respected tax professional commented that she thought it would go on the amended return. But I don't see how that could be the case.Comment
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Thanks. That is what I thought, no one being 100% sure.
After some thought, I will put it on a current year's return to save interest on amended "balance due" returns.
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I had another change of mind, put everything on the amended return including the fees charged by ERC company that filed the amended 941Xs.Last edited by BOB W; 07-17-2023, 01:47 PM.This post is for discussion purposes only and should be verified with other sources before actual use.
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IMO, interest income would be reported in the year received.
Payments to ERC company would be on the return for year in which they were paid. If a fraudulent claim, I have a different opinion, but we are going to assume not a fraudulent claim.Comment
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I'll let you know what the IRS says. I have already filed the amended return for 2020 with all ERC issues entered on the return. Refund, Interest Income and ERC payment all on one amended return.This post is for discussion purposes only and should be verified with other sources before actual use.
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Do you mind sharing the authority you relied upon for your position?Comment
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I used the same authority that caused the amended return to be filed for the ERC refunds that were issued in a subsequent year but had to be carried back. I took the whole transaction as one transaction.
Time will tell if it was correct. On the amended return I spelled out exactly what I was doing. So if it is wrong it will be stopped immediately and I'll be notified.Last edited by BOB W; 07-24-2023, 09:57 AM.This post is for discussion purposes only and should be verified with other sources before actual use.
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Did you disclose it using the 8275?
I’m wondering if the risk is having the IRS process the return as is, then later adjusting in audit?Comment
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I probably should have filed an 8275, but didn't.This post is for discussion purposes only and should be verified with other sources before actual use.
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