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IRS provides additional ERC guidance

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Tax Hot Topics newsletter The IRS recently issued Notice 2021-49 to provide guidance on the version of the employee retention credit (ERC) provided under new Section 3134 for the third and fourth calendar quarters of 2021, as added by the American Rescue Plan Act of 2021. Note: the bipartisan infrastructure bill that recently passed the Senate would eliminate the employee retention credit effective Sept. 30, 2021, for all employers except recovery startup businesses. See our previous story for a full discussion of the infrastructure package.

In addition, Notice 2021-49 provides guidance on several issues that also arise under the versions of the ERC originally enacted under the Coronavirus Aid, Relief, and Economic Security Act (for 2020 calendar quarters), and extended by the Taxpayer Certainty and Disaster Tax Relief Act of 2020 (first two calendar quarters of 2021). The notice also amplifies certain of the prior guidance issued by the IRS with respect to those earlier versions of the ERC (IRS Notices 2021-20 and 2021-23).

Contact:
Jeff Martin
Partner
Washington National Tax Office
T +1 202 521 1526

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