I'm dealing with this exact situation right now with three different clients who just received their 2020 ERC refunds! It's such a relief to see this thread confirming the 60-day rule - I was really panicking about being outside the normal amendment window. One thing I wanted to add for anyone else in this boat: make sure you're also considering the impact on any state credits or deductions that were based on the original wage amounts. In my state (Illinois), we have some workforce development credits that are calculated based on wages paid, so the reduced wage expense from the ERC could affect those calculations too. Also, I've found it helpful to prepare a simple timeline document for each client showing: original return filed date, ERC claim filed date, ERC refund received date, and amendment filing date. This makes it crystal clear to the IRS that we're within the proper timeframe and helps support the correlative adjustment argument. Has anyone encountered situations where the client received partial ERC refunds over multiple dates? I have one client who got their 2020 ERC in two separate payments about a month apart, and I'm wondering if the 60-day clock starts from the first payment or if each payment gets its own 60-day window.

This thread has been incredibly helpful! I'm currently facing this same nightmare scenario with two of my S-corp clients who just received their 2020 ERC refunds - one for $28k and another for $51k. I've been losing sleep over this thinking we were completely out of luck with the 3-year amendment deadline having passed. The 60-day correlative adjustment rule is news to me, and honestly a huge relief. I'm definitely going to file the amended 1120-S and corresponding 1040-X returns ASAP. One additional consideration I wanted to mention - make sure to check if your client has any outstanding installment agreements or payment plans with the IRS. I had a situation last year where filing an amended return that increased tax liability affected an existing payment plan, and we had to contact the IRS to modify the agreement terms. Also, for anyone dealing with this, I'd recommend calculating the additional tax liability before filing so your client isn't surprised. The reduction in wage deduction flows through as additional taxable income on the K-1, which could push them into higher tax brackets or affect other deductions. Better to prepare them for the tax impact upfront than have an unhappy client later! Thanks everyone for sharing your experiences - this community is such a lifesaver for situations like these!

Just want to say this is exactly why I always recommend calling the IRS directly rather than waiting. So many people just sit around checking WMR daily when a 20-minute phone call can clear things up. Glad you took initiative and got answers! The IRS is overwhelmed but most agents really do want to help if you can get through to them.

Thanks for sharing this experience! It's so frustrating how inconsistent the information can be between different IRS reps. I filed around the same time (Feb 3rd) and have been getting the runaround too. One agent told me my return was "under review" and another said it was "processing normally" - like which is it?? I'm definitely going to check my transcript tomorrow like you suggested. Did the rep give you any specific codes to look for, or just said to watch for updates? Also curious if Jackson Hewitt gave you any tracking info on their end or if you had to rely entirely on the IRS systems. Really hoping this gets resolved quickly for you - the uncertainty is the worst part!

Quick question - does anyone know if there's a specific IRS form I need to submit all the 1099-Cs I issue as a landlord? I have 3 tenants I'm considering debt forgiveness for, and I'm not sure if they're submitted individually or as a batch.

One thing I learned the hard way - make sure you have the tenant's correct SSN or TIN before filing the 1099-C. I had a situation where I only had a partial SSN from an old application, and the IRS rejected my filing. They require the complete, accurate taxpayer identification number. If you don't have their SSN, you can try reaching out one final time requesting it specifically for tax reporting purposes. If they still don't respond, you can file the 1099-C with "APPLIED FOR" in the TIN field, but this may trigger additional IRS correspondence later. Also worth noting - if your tenant was a business entity rather than an individual, you'd need their EIN instead of SSN, and the reporting requirements can be slightly different. The $600 minimum still applies, but make sure you're clear on whether you're dealing with personal or business debt forgiveness.

I'm actually going through something similar with a different payroll service. What happens if you don't get this resolved before the filing deadline? Is it better to file an extension or try to file with the substitute form?

I went through this exact situation with my S-Corp a few years back when my payroll company went out of business mid-year. Here's what I learned from my CPA and the IRS: 1. **Document everything** - Keep records of all your attempts to contact Gusto, including dates, times, and what they told you. Screenshot any emails or chat conversations. 2. **Know your rights** - As others mentioned, Gusto has a legal obligation to provide your W-2 regardless of your subscription status. The fact that they processed payroll for you creates this responsibility. 3. **Form 4852 is your friend** - If Gusto continues to refuse, Form 4852 (Substitute W-2) is the legitimate IRS-approved solution. Make sure to use your final paystub's year-to-date totals, as these should match what was reported to Social Security. 4. **Consider state requirements too** - Don't forget that you may also need state wage statements depending on where your LLC was based. The good news is that this situation is more common than you'd think, and the IRS has established procedures to handle it. Just make sure all your numbers are accurate and you have documentation showing your good faith efforts to obtain the proper W-2.

Important note that I learned the hard way: How you CLAIMED the depreciation matters, not just how you COULD HAVE claimed it. If you took accelerated depreciation under MACRS or Section 179 expensing, the recapture rules still apply to what you actually deducted. In your example, even tho your selling at a loss overall, make sure your keeping good records of exactly what depreciation method you used and how much you claimed each year.

I went through something very similar with machinery I sold last year. Your calculation is spot on - since you're selling below your adjusted basis of $13,300 ($26,500 - $13,200), you have an ordinary business loss of $6,500 that you can deduct. No depreciation recapture applies here. One thing to watch out for though - make sure you have proper documentation of the original purchase price and all depreciation claimed. The IRS may want to see Form 4797 for the sale of business property, and you'll need to show the depreciation schedule. Also, if this equipment was claimed under Section 179 expensing in addition to regular depreciation, the loss calculation works the same way but the paperwork gets a bit more complex. The key thing to remember is that recapture only kicks in when there's actually a gain above your adjusted basis. In loss situations like yours, you're essentially getting an ordinary deduction that can offset other business income, which is actually more favorable than a capital loss would be.