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The Families First Coronavirus Response Act (FFCRA) created COVID-19 tax credits to reimburse business owners and self-employed individuals for providing paid sick and family leave wages to themselves and their employees. The Self-Employed Leave FFCRA (“SELF”) Credit can be claimed for days between April 1, 2020 and September 30, 2021 when an individual was unable to work due to COVID-19 related care of self, a child, or others. The tax experts at Figure Financial have created a seamless process for eligible individuals to claim the SELF Credit retroactively for qualifying periods.
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The IRS released updated guidance on the Employee Retention Credit program on September 14, 2023. The news release below explains that the IRS has placed an immediate moratorium through the end of the year on the processing of new ERC claims in effort to curb fraudulent applications by bad actors. While a moratorium may sound alarming, this intentional pause is a common practice used by the IRS.
This is a developing situation, and we will continue to provide updates as new information is released. This what we know so far:
On January 31, 2024, the House passed the Tax Relief for American Families and Workers Act of 2024, which proposed an end to the ERC program effective January 31, 2024. This is now pending approval from the Senate. Please note that we will not be processing any new ERC claims until a final vote is reached. Our team of attorneys and CPAs is closely monitoring the situation. For more information about this new legislation, read this Tax Update from our legal team on our blog.
Employers for whom all of the following is true:
Employers who have already cashed their refund checks or who claimed the ERC on their original employment tax return.
The IRS created the withdrawal option to help small business owners and others who were pressured or misled by ERC marketers or promoters into filing ineligible claims.
Claims that are withdrawn will be treated as if they were never filed. The IRS will not impose penalties or interest, which can save you a lot of money.
Cincinnati Refund Inquiry Unit
PO Box 145500
Mail Stop 536G
Cincinnati, OH 45250
**Mail your package via certified mail to track and confirm delivery.
The IRS will send you a letter telling you whether your withdrawal request was accepted or rejected. Your approved request is not effective until you have your acceptance letter from the IRS. If your withdrawal is accepted, you may need to amend your income tax returns if you already included the claim for the ERC in the filing. If you need help, seek out a trusted tax professional.
NAVIGATION
Figure Financial, Inc.
March 2020
The FFCRA is passed to help the United States combat COVID-19 by providing small and midsize employers refundable tax credits that reimburse them, dollar-for-dollar, for the cost of providing paid sick and family leave wages to their employees for leave related to COVID-19. The FFCRA extends to self-employed individuals equivalent refundable tax credits against net income tax. As initially written, days taken between April 1, 2020 and December 31, 2020 are eligible to qualify for these credits.
December 2020
The Consolidated Appropriations Act of 2021 is passed which extended the initial FFCRA credit to cover days between January 1, 2021 and March 31, 2021.
March 2021
The American Rescue Plan Act of 2021 is passed which created a second time period of eligibility for FFCRA credits for days between April 1, 2021 and September 30, 2021. This second round of the credit expanded the eligible day qualification reasons to include immunization-related leave.
You were subject to a federal, state, or local quarantine or isolation order related to COVID-19.
You were advised by a health care provider to self-quarantine due to concerns related to COVID-19.
You were experiencing symptoms of COVID-19 and seeking a medical diagnosis of COVID-19.
You were seeking or awaiting the results of a diagnostic test for, or a medical diagnosis of COVID-19.
You were exposed to COVID-19 or were unable to work pending the results of a test or diagnosis.
You were obtaining immunization related to COVID-19.
You were recovering from any injury, disability, illness, or condition related to such immunization.
You were caring for an individual who was subject to a federal, state, or local quarantine or isolation order related to COVID-19.
You were caring for an individual who had been advised by a health care provider to self-quarantine due to concerns related to COVID-19.
You were caring for a son or daughter because the school or place of care for that child was closed or the childcare provider for that child was unavailable due to COVID-19 precautions.
You were accompanying an individual to obtain immunization related to COVID-19.
You were caring for an individual who was recovering from any injury, disability, illness, or condition related to the immunization.
ELIGIBILITY REQUIREMENTS
DOCUMENTATION REQUIREMENTS
Dates COVID-19 care impacted individual