ERC Checks are Arriving! What Should You Do Next?

We are thrilled to hear from our clients who are already beginning to report receipt of their IRS Employee Retention Credit (ERC) checks along with the corresponding IRS Notice accompanying those checks! Frost Law’s dedicated team of attorneys, CPAs, and financial professionals are all delighted to see their efforts and results aligning with the Congressional intent driving the ERC – making sure those employers who kept employees on payroll during tough times are rewarded. We remain hopeful that IRS turnaround will remain steady or, perhaps, even deliver faster results.

We want to take this time to emphasize what you should do and expect upon receipt of your ERC checks:

1. Please forward Frost Law a copy of the IRS Notice CP210 that accompanies the ERC checks. The notice should include wording such as: “Changes to your [relevant quarter identified] Form 941. Overpayment: $____.” 
2. Frost Law will confirm that the amount of the ERC obtained comports with the paperwork we prepared on your behalf.
3. Deposit that ERC check into your business bank account. We recommend that you designate the deposit as “Other Income” in your QuickBooks or similar program to ensure the tax implications of the credit will be addressed.
4. Contact your accountant and ensure they are aware of the credit claimed. We would be glad to speak with them to ensure they understand how to properly treat the credit for income tax purposes.