When an amended tax return say 2020 due to ERTC is filed and the taxpayor is charged interest is there an abatement of the interest due to reasonable cause?
Thanks Tom, if the cpa did not prepare the claim for ertc credit nor the amended 941s but now taxpayers wants the cpa to amend the 2020/2021 tax returns to report credit. What would be the responsibility for the cpa on the amended return? A full review of the ertc claims for eligibility and recomputing the claims prepared by the third party?
OPR addressed this in the release mentioned in the article. A Circular 230 practitioner cannot prepare an original or amended return perpetuating an improper credit. Due diligence must occur prior to amending the prior year returns.
Would you recommend filing a protective refund claim on those 2020 amended ? If the erc is disallowed and have to refund, the taxpayer can still amend again to deduct the payroll expenses
thanks
Hi Tom,
When an amended tax return say 2020 due to ERTC is filed and the taxpayor is charged interest is there an abatement of the interest due to reasonable cause?
Nope. It is part of the cost of doing ERC.
Thanks Tom, if the cpa did not prepare the claim for ertc credit nor the amended 941s but now taxpayers wants the cpa to amend the 2020/2021 tax returns to report credit. What would be the responsibility for the cpa on the amended return? A full review of the ertc claims for eligibility and recomputing the claims prepared by the third party?
OPR addressed this in the release mentioned in the article. A Circular 230 practitioner cannot prepare an original or amended return perpetuating an improper credit. Due diligence must occur prior to amending the prior year returns.
Yes correct, just how far do we go. Recompute or review the reports for reasonableness
That a decision you need to make based on the facts.
Would you recommend filing a protective refund claim on those 2020 amended ? If the erc is disallowed and have to refund, the taxpayer can still amend again to deduct the payroll expenses
Decline in revenue should be straight forward the others will be interesting. Thanks again