Surprisingly, less than 5% of small businesses are aware of this lucrative ERC tax credit program. Most employers file these quarterly tax returns, so they must use Form 941-X (Adjusted Quarterly Employer Tax Return). Eligible businesses, Smith said, can file a request for retroactive reimbursement from the ERTC on qualifying wages previously paid during the last calendar quarters by filing Form 941-X, Employer Adjusted Quarterly Federal Tax Return, or request for reimbursement. The ERC can only be filed using IRS Form 941-X, “Adjusted Federal Tax Return or Employer Refund Request.” They can say that amendments can be submitted up to three years after the filing date of each quarterly payroll tax, resulting in a different deadline for applying for the ERC for each calendar quarter.
You can also apply for the ERC for previous quarters by filling out the applicable adjusted payroll tax return within the appropriate deadlines. This rule is derived from Section 6513 of the Code, in which subsection (c) “Reporting and Payment of Social Security Taxes and Income Tax Withholding” includes the rule that: “(If a return is filed for any period ending on or within one calendar year before April 15 of the following calendar year, such return shall be considered filed on April 15 of that next calendar year). Filing amended employment tax returns can be difficult, especially if you don't normally file these returns. Some tax advisors are misstating the rules related to the deadlines for employee retention credit (ERC) applications.