I am completely confused about how to take this credit on Pro Series 1120-S. The guidance in February (I thought )was to to reduce wages by the amount of the credit and record it as a receivable. 941-X's were to be prepared requesting a refund . We have done several tax returns this way and are waiting for the clients to get the refunds.

Now it seems The latest IRS guidance  says that the employee retention credit is to be reported on Form 1120-S on line 13g (Other Credits), using code P. on Schedule K and using Form 5884. This creates a TAX credit on K-1 to be applied against 2020 taxes.

So does this mean there wont be any refunds and instead of a refund  we are supposed to enter this as a tax credit ? Should we amend the previously filed 1120-s returns? And the 941x.s?

Thanks so much for your help