Business & Investment

The IRS solves questions to companies that were taking advantage of valuable pandemic tax credits

In the early stages of the pandemic, tax credits ended early as a way to help businesses maintain their staff salaries.

Employee retention credits were created under the CARES Act of March 2020. Lawmakers have expanded and expanded their refundable credits until they pay the target company up to the maximum. $ 7,000 Quarterly by worker.

The Internal Revenue Service ended the tax credit in the third quarter, so if you are using the tax credit in the fourth quarter of 2021, you are instructing the company what to do next. Companies can pay off advanced tax credits and make up for tax shortfalls, giving them time to avoid penalties.

On Monday, the IRS said companies that prepaid in the fourth quarter “avoid not paying fines if they repay those amounts by the due date of the applicable employment tax return.”

Companies that have reduced their deposits by 20 December can avoid fine deposit failures, especially if they remit their retained tax amount “before the relevant due date of wages paid on 31 December 2021”. .. Those dates are subject to change, the IRS said.

IRS Guidance You can read it here.

Few companies had access to this credit, which applies to the Treasury payroll tax. Study showed..But companies that used credit I considered it important For their profits.

The credit was scheduled to be credited until the end of the year under the provisions of the $ 1.9 trillion US rescue program.However Infrastructure bill We have shortened the credit validity period so that many companies will end it at the end of the third quarter.

This will bind the credit recipient if he receives a prepayment at the end of the year or if he reduces the payroll tax he was sending in the fourth quarter.

The IRS solves questions to companies that were taking advantage of valuable pandemic tax credits

http://www.marketwatch.com/news/story.asp?guid=%7B20C05575-04D4-B545-77CC-9392EA92B44D%7D&siteid=rss&rss=1 The IRS solves questions to companies that were taking advantage of valuable pandemic tax credits

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