ERC Refunds Issued in 2025
View More DetailsHello - the Spidell Federal tax update made a comment in chapter 2 page 3 regarding updated IRS FAQ's. The comment states "It's important to remember that the IRS's guidance was issued through website FAQ's, which are not authoritative". I took this to mean that there may be an argument and justification for not picking up the income as taxable in the year the ERC refund is received. In this case, I have a client who received a 2021 wage payment in 2025.
Can anyone else comment on this topic and how they might be handling it?
Comments
If they did not reduce the 2020/2021 wages on the original returns or through amendments with the ERC amount, then they must report that as income. Interest related to that is also income, regardless of wage reduction.
I think when they said it's not authoritative, they meant that instead of reporting it as income now, you can still decide to go back and amend.
