It's October 2023 and there are two tax ghosts that might be haunting you: the ERC credit and the upcoming 2023 tax deadline.
ERC Credit
The Employee Retention Credit (ERC) is a tax credit created by the CARES Act to help businesses that were impacted by the COVID-19 pandemic. The ERC credit can be used to offset the cost of qualified wages paid to employees during the pandemic.
If you claimed the ERC credit, you need to ensure you were eligible for it. If you're unsure if you were eligible, you can review the IRS website for a checklist and more information.
If you realize that you were not eligible for the ERC credit, you can withdraw your claim. The IRS has released a new process for doing so.
To withdraw your ERC claim, there are different actions that you will need to take depending on what stage of the process you are in: received and cashed checks, received but did not cash checks, processing, and not yet processed.
If you need help withdrawing your ERC claim, or if you have any other tax questions, please reach out to us ASAP.
Get Ready for the 2023 Tax Deadline
The 2023 tax deadline is fast approaching, and business owners need to be prepared. Here are a few tips:
- Gather your tax documents. This includes things like W-2s, 1099s, closing your books, documentation of your tax strategies and positions, and receipts for deductible expenses.
- Estimate your tax liability. You can use a tax calculator online to do this or meet with your CFO or CPA to estimate where you will finish the year.
- Evaluate changes you can make in the final months of the year to reduce taxable income or taxes. Is there a big expense or payment in full that might reduce your tax liability for 2023? What pre-tax retirement savings might you consider? Consult a tax strategist to see if there are any deductions or credits that you are leaving on the table?
- Devise a plan to save any additional cash towards taxes before the tax deadline. If you cannot make payment on the deadline, consider what you might be able to negotiate as a payment plan with the IRS.
Don't let tax ghosts haunt you this spooky season! If you have any questions or concerns about the ERC credit or the 2023 tax deadline, contact us today!