ERC SOLD SCORP IN 2022

[michele]

client brings in information. he got ERC money. We did a final  S Corp return in 2022 he sold the business. The money was for 2020. Is  the 2020 going to have to be amended. He also paid someone for getting him the ERC money so he has those expenses that was charged against the ERC  The expenses  really to me are 2023 expenses but they go against the ERC. He is also receiving the final payment in 2024 so that would mean amending it twice.  I wish I could close my eyes and just show it as other income on his personal return. It is not going to change his tax bracket. 

thx

Michele

[sjrcpa]

2020 needs to be amended.

If the S Corp was sold in 2022, who got the ERC money? Was it a stock sale or asset sale?

And who paid the ERC "promoter"?

Was this addressed in the sale agreement?

[dkh]

Curious.........did this client actually qualify for ERC ?    

[IRonMaN]

@dkh - that’s the question I always wonder about when I see an ERC post here

[michele]

This was a transaction that they took on themselves as far as the ERC. I think they fell for one of those phone calls. This transaction happened after the fact of the business being sold it was not a stock sale.

[michele]

Asset sell. The original owners got the money. and still waiting on another payment to come thru this year 2024 . Got part of the payment in 2023

[sjrcpa]

If they fell for one of those phone calls, consider they may not be entitled to it and should return it. IRS has a voluntary Don't Go to Jail, Give it Back program going on now.