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  • 1.  ERC refunds when the original statute of limitations has expired

    Platinum Most Valuable Member
    Posted 08-15-2024 11:56 AM

    A fellow practitioner asked me a question and I did not know the answer: A client files for an ERC for 2020. He has yet to receive it. If and when it is received, he supposed to file amended returns for himself and his corporation.  However, the statute of limitations for 2020 tax returns has expired.  

    Should the amended returns be filed. If the answer is yes, would you file the state amended returns.

    Thanking you in advance.



    ------------------------------
    Michael Rubinstein
    CPA
    Michael D. Rubinstein CPA, PC
    North Bellmore NY
    516-900-1429
    ------------------------------


  • 2.  RE: ERC refunds when the original statute of limitations has expired

    Silver Most Valuable Member
    Posted 08-15-2024 12:22 PM

    Michael,

    Some years back I filed a 1040X (not for an ERC) after the statue expired.

    The 1040X was returned by the IRS.

     

     

    Click here to upload file securely

     

    Peter B. Morse, CPA

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  • 3.  RE: ERC refunds when the original statute of limitations has expired

    Silver Most Valuable Member
    Posted 08-16-2024 07:30 AM
    Hi Michael,

    2 points.

    1-I would think that the statute of limitations for the filing of the amended tax returns would start when the ERC refund is received.  If you don't file, the statute continues to run.

    2-Why would a state amended tax return be required?  The amended return is for a reduction in wages due to the ERC refund.  There was no refund or reduction of taxes for the state, only for the federal.

    --
    Larry Prosky CPA
    Prosky & Rosenfeld LLP CPAs

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  • 4.  RE: ERC refunds when the original statute of limitations has expired

    Platinum Most Valuable Member
    Posted 08-16-2024 07:39 AM

    Although there is no change in tax to a state tax payer,  the NYS return does start off with Fed reported income. 

     

    Also , side note, don't forget to adjust basis and then carry it forward so that the current return has a proper opening balance for basis.   This in itself could have unforeseen effects.  

    Just a thought !!!

     

     

    Abby Alhante,  CPA

     

    Kurcias & Alhante, LLC CPAs

    525 Broadhollow Road  Suite 104

    Melville NY  11747

    516.829-5890  Ext  2   Fax 516-829-3976

    Mobile 516-381-9301

    AbbyA@KurciasAlhanteCPAs.com

    ( E mail response preferred )

     

     






  • 5.  RE: ERC refunds when the original statute of limitations has expired

    Posted 08-16-2024 09:14 AM
    Technically the statute prevents you from claiming a refund on a more then 3year old return it does not prevent you from amending, so yes it should still be filed and while it should have zero effect on the state return I would still file it, to show the adjustment otherwise might (who knows) get a letter at some point from the state looking for money based on the federal amended 





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