URGENT: Employee Retention Credit Claims May End After January 31, 2024

A bill was introduced in Congress this week entitled The Tax Relief for American Families and Workers Act of 2024. The bill contains multiple provisions that will benefit businesses and families through the expansion of various deductions and credits. However, in an effort to offset some of the revenue reduction resulting from these taxpayer favorable provisions, the bill would bar any claims made under the Employee Retention Credit (ERC) program that are filed after January 31, 2024. The ERC is a refundable tax credit available to employers who continued to pay employees during periods of COVID-related business shutdowns and/or significant declines in revenue.

Currently, the deadlines to submit ERC claims are April 15, 2024 for 2020 claims and April 15, 2025 for 2021 claims. If the proposed legislation is passed, the cutoff for ERC claims would be moved to January 31, 2024. If you are in the process of filing an ERC claim or still considering if you should file a claim, we recommend expediting this process to ensure you are able to file before the potential January 31, 2024 cutoff.

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