IRS Changes Position on Amending Tax Returns for ERTC
In a March 20, 2025 FAQ update, the IRS changed its position on reporting reduced deductions in the year of an ERTC claim.
Previously, taxpayers were required to amend the tax returns for the year of the ERTC claim and reduce their deductions by the credit amount.
Taxpayers can now simply report the ERTC refund in the year received instead of amending the tax returns for the year in which the wages creating the credit were paid.
The IRS FAQ post (“Q2. I claimed the ERC but didn’t reduce my wage expenses…”) can be read here.
