Question. I have a client that recieved a employee retension credit for 2020. The amount was $200K. The business entity is a partnership. I am doing the partnership return. There is two Partners. I know I have to amend the 2020 Partership return and redue the payroll expense by the $200K. But they did not recieve the $200K until 2022. Do I just reduce the wage expense by $200k and debit the A/R for $200K?  They will owe additional  taxes on the 2020 amended K-1s. My question is the $200K add to the capital account? reason is that in 2020 they are closing the business and will be distributing the $200K but they don't have enough capital basis to do a non-taxable distribution. About a $140K~ will be taxable becuase of each partner's captial balance. Is this correct or does the $200K add to the capital account. 

Thank

Ron