The ERC came about in March of 2020 as part of the CARES Act, and then was expanded greatly in December 2020 by the Consolidated Appropriations Act of 2021, which among other things eliminated the ban on the ERC if a taxpayer received a paycheck protection program (PPP) loan.
One of the many COVID-19 relief measures hastily issued by Congress was the Employee Retention Credit (ERC). The ERC offers refunds against 2020 and 2021 payroll taxes of as much as $31,000 per employee, so the numbers can add up.
The IRS collection division is recovering from pre-pandemic lockdowns and began sending out letters from the Automated Collection System function in June. They also restarted the income tax levy program in July. In addition, responsible officers continue to work on non-filer cases and are sending out notices and billing notices; however, their focus is primarily …
The infrastructure bill passed by the U.S. Senate on August 10, 2021 would end the employee retention credit (ERC) early, making wages paid after Sept. 30, 2021, ineligible for the credit (except for wages paid by an eligible recovery startup business).
