When can a taxpayer continue to claim the Employee Retention Credit (ERC) for 2020 expenses?

The Employee Retention Credit (ERC) is a refundable tax credit designed to encourage businesses to retain their employees during the COVID-19 pandemic. For expenses incurred in 2020, taxpayers generally have until three years after the date they filed their tax return or the due date of that return (whichever is later) to claim the credit.

Since the original filing deadline for most 2020 tax returns was April 15, 2021, taxpayers would typically have had until April 15, 2024, to claim the ERC for eligible wages paid to employees in 2020. This timeframe allows businesses to amend previous tax returns to obtain the credit.

Claiming the ERC by this deadline ensures that businesses can take full advantage of this benefit to alleviate financial difficulties caused by the pandemic. Therefore, the correct date for continuing to claim the ERC for 2020 expenses is April 15, 2024.