ERC Repayment and Tax Treatment for S-Corp
View More DetailsIf a taxpayer claimed an ERC refund in 2020 and amended the 2020 tax return to decrease the wage deduction, and in 2024 the IRS proposed a change to the ERC refund requiring the taxpayer to repay it, how should the ERC repayment in 2024 be treated on the Form 1120-S?
Comments
It is treated as an expense. You can literally do an expense line item called “repayment of 2020 ERC refund.”
If it were me, I would not include it in wages as I like my wages line to tie to the W3.
Which box on the w3 should it tie to?
