Furthermore, there has been a lot of abuse surrounding the ERTC filings, so the IRS will be auditing ERTC filings for appropriateness, so it is important that you maintain strong documentation as to why you qualify, how you calculated qualified compensation, and that you properly considered other funding.
Also keep in mind that, as discussed above, the ERTC, unlike the PPP, is subject to income tax and is taxable in the year the credit is taken for. So if you are a December 31st taxpayer, you will need to file an amended 2020 return for any credits you received in 2020 and an amended 2021 return for any credits received in 2021.
The ERTC regulations are somewhat complex, but we can help you navigate the these credits… but keep in mind that the credits do start to expire by July 31, 2023.
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Kenneth R. Cerini, CPA, CFP, FABFA
Managing Partner
Ken is the Managing Partner of Cerini & Associates, LLP and is the executive responsible for the administration of our not-for-profit and educational provider practice groups. In addition to his extensive audit experience, Ken has been directly involved in providing consulting services for nonprofits and educational facilities of all sizes throughout New York State in such areas as cost reporting, financial analysis, Medicaid compliance, government audit representation, rate maximization, board training, budgeting and forecasting, and more.
Jonathan McGrath
Staff Accountant
Jon is a staff accountant of Cerini & Associates audit and consulting practice. He works with nonprofit, special education and school district clients. His consulting and analysis experience allows him to assist in vital audit functions, such as system testing and analysis, as well as audit functions.