If you’re wondering when the Employee Retention Tax Credit (ERTC) expires, this article is for you. You may have read that the ERTC expires in March or July of 2023, but this is incorrect. Within the instructions provided by the IRS for Form 941-X, the following paragraph provides the answer:
“Generally, you may correct overreported taxes on a previously filed Form 941 if you file Form 941-X within 3 years of the date Form 941 was filed or 2 years from the date you paid the tax reported on Form 941, whichever is later. You may correct underreported taxes on a previously filed Form 941 if you file Form 941-X within 3 years of the date the Form 941 was filed. We call each of these time frames a “period of limitations.” For purposes of the period of limitations, Forms 941 for a calendar year are considered filed on April 15 of the succeeding year if filed before that date.”
Based on the above paragraph, the statute of limitations for the ERTC are April 15, 2024 for qualifying 2020 quarters and April 15, 2025 for qualifying 2021 quarters.
To learn more about the Employee Retention Tax Credit, here are some suggested articles:
- Overview of the Employee Retention Tax Credit
- An explanation of gross receipts for the ERTC
- Learn about the ERTC suspended operations test
- Watch for these ERTC fraud signs
If you’d like help with exploring your ERTC eligibility and claiming it, check out our ERTC services.