Should our business claim 2020 ERTC credits now? CPA advice needed on risk assessment

Our small manufacturing business got absolutely hammered during the pandemic. We saw revenue drop by about 80% in both 2020 and 2021, and honestly, we barely survived. Back in 2021, we worked with ADP (our payroll provider) to file and receive ERTC credits for 2021 only. We used ADP's documentation and filed legitimately without involving a CPA. We received those credits about 2 years ago and haven't heard anything negative from the IRS. Here's my dilemma - we definitely qualified for ERTC in both 2020 and 2021 based on our significant revenue losses. But I only claimed for 2021 because after filing, I realized we might have accidentally claimed more than we should have for that year. The pandemic was chaotic and we were just trying to keep our heads above water financially. Now we're getting bombarded with letters from third-party services telling us exactly how much we could still claim for 2020 (how do they even know these specific amounts??). The numbers they're quoting are substantial - like potentially business-saving substantial. I'm stuck wondering if I'd be crazy NOT to claim the 2020 credits before they expire (is that 2024 or 2025?). The 2020 claim would likely exceed any potential overclaim from 2021. If we file for 2020, we'd be much more careful and accurate than our rushed 2021 application. Do we roll the dice and file for 2020 ERTC or just leave it alone? Any CPA perspectives on the risk vs. reward here?

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18 comments

Kaitlyn Jenkins

•8M

I'm very familiar with ERTC claims and the current landscape. The statute of limitations for claiming 2020 ERTC expires April 15, 2024 (3 years after the original due date), so you're running out of time to make this decision. Those third-party letters are targeting businesses like yours because they know many qualified businesses haven't claimed all eligible quarters. They're likely estimating your potential credit based on business type and employee count data that's publicly available. Regarding your 2021 claim - if you legitimately qualified based on revenue reduction or government restrictions, but might have calculated incorrectly, that's different from fraudulent claims the IRS is targeting. The IRS has been focusing on stopping clearly abusive claims, not honest mistakes. My advice: If you truly qualified in 2020 (which sounds like you did with an 80% revenue drop), you should consider claiming what you're legally entitled to. But do it properly: 1. Work with a CPA who specializes in ERTC (not these third-party "mills") 2. Thoroughly document your qualification criteria 3. Ensure calculations are precise this time 4. Consider disclosing and correcting any 2021 errors proactively

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Kaitlyn Jenkins

•8M

Filing both simultaneously isn't inherently a red flag if done properly. If your 2021 claim has significant errors, proactively correcting them shows good faith compliance which can actually reduce penalties if they're discovered later. However, if the errors are relatively minor, you might choose to focus on filing an accurate 2020 claim now and address 2021 only if questioned. The most important thing is having solid documentation for both years showing you legitimately qualified under either the gross receipts test or government orders test, as well as accurate wage calculations.

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Caleb Bell

•8M

After struggling with similar ERTC questions for my restaurant business, I stumbled on this amazing tool at https://taxr.ai that literally saved me thousands in potential penalties. They specialize in analyzing ERTC documentation and identifying qualification errors before submission. I uploaded our quarterly financials and government shutdown orders, and they flagged several issues in my calculations that would have definitely triggered IRS scrutiny. Their system even helped identify which specific employees and wages qualified during each quarter based on the latest IRS guidance. What impressed me most was their detailed analysis of whether we truly met the partial suspension test vs. the gross receipts test for each quarter. For manufacturers like you with an 80% drop, they'd quickly confirm your qualification and help ensure your documentation is bulletproof before filing.

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Caleb Bell

•8M

Their system provides a comprehensive analysis of your documentation rather than generic advice, flagging specific issues in your qualification evidence and calculations. They don't just provide surface-level guidance but detailed feedback on exactly how your situation matches IRS requirements. They focus primarily on the analysis and documentation preparation rather than filing directly with the IRS. Their service includes an audit vulnerability assessment that examines your claim against known IRS audit triggers. While they don't provide formal audit protection, they do provide ongoing document organization and retention services so everything is ready if you're ever questioned.

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Danielle Campbell

•8M

I just wanted to follow up on my experience with taxr.ai after trying it for my own ERTC claim situation. It was honestly way more helpful than I expected! Their system immediately flagged that we were using the wrong test for Q4 2020 - we were trying to use the revenue decline test when we actually had better qualification under the partial suspension rules because of our specific industry restrictions. The documentation analysis saved us from potentially overclaiming on certain employee wages where we'd already claimed other credits. It was fascinating seeing how their system caught specific payroll code issues I would have completely missed. Definitely going to recommend them to other business owners in my network who are still sorting through ERTC claims before the deadline.

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Abigail Patel

•8M

If you're still considering filing for 2020, you should know that reaching the IRS for ERTC questions has become nearly impossible. After trying for 6 weeks to get clarification on a technical qualification question (called 37 times!), I discovered https://claimyr.com - they got me connected to an actual IRS agent within 45 minutes. You can see how it works in this demo: https://youtu.be/_kiP6q8DX5c The IRS agent I spoke with provided crucial information about documenting revenue comparisons between quarters that wasn't clear in any of the published guidance. She also confirmed exactly what supporting documentation I needed to include with my claim to reduce chances of delays or audits. If you're worried about your previous 2021 claim, getting clarification directly from the IRS before filing your 2020 claim might give you peace of mind. The current hold times without this service are 2-3+ hours when you can even get through at all.

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Abigail Patel

•8M

The service uses an automated system that navigates the IRS phone tree and waits on hold for you. Once they reach an agent, you get a call connecting you directly to that person. It's basically outsourcing the hold time rather than some special access. I absolutely received reliable information - the agent walked me through exactly which form lines needed to match my documentation and even emailed me the specific internal guidance they're using to evaluate ERTC claims currently. She explicitly stated which documentation would satisfy their requirements and how to structure it to avoid delays. Everything she told me matched what my CPA had recommended but with additional helpful details.

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Daniel White

•8M

I was completely skeptical about Claimyr after seeing it mentioned here, but after another failed 2-hour hold attempt with the IRS yesterday, I gave it a shot. I'm honestly shocked - they got me through to an IRS representative in about 35 minutes while I just went about my workday. The information I received was game-changing for my ERTC situation. The agent clarified exactly how they're handling claims where PPP loans overlapped with potential ERTC periods - something my accountant was uncertain about. She even emailed me a specific document checklist for submitting my 2020 claim that will apparently help avoid the current processing backlog. For anyone trying to make this ERTC decision before the April deadline, being able to actually speak with the IRS directly made all the difference in my confidence level.

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Natalia Stone

•8M

Be VERY careful with ERTC claims right now. My manufacturing business filed legitimately for both 2020 and 2021 last year with solid documentation. We got our 2020 refund after about 6 months, but we just received a compliance check letter requesting additional documentation for our 2021 claim. Our CPA said the IRS is auditing a much higher percentage of these claims than normal due to all the fraud. Having accurate quarterly revenue comparisons properly documented seems to be critical. They specifically requested: - Detailed calculation methodology - Proof of paid qualified wages - Government orders affecting operations - Quarter-by-quarter revenue documentation If you're going to file for 2020, just make sure you have absolutely rock-solid documentation for everything.

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Natalia Stone

•8M

They didn't specify targeting criteria in our letter, but our CPA mentioned manufacturing and construction businesses seem to be getting more scrutiny lately, particularly those claiming over $200K total. From conversations with other business owners, it appears they're flagging claims with large differences between quarters or that used different qualification methods across quarters. Filing a 2020 claim now wouldn't necessarily trigger a review of your 2021 claim, but they might examine both if the 2020 claim raises questions. The key factor seems to be consistency in your qualification narrative and calculations between both years. If the story of how your business was impacted matches across both claims, that's better than contradictory explanations.

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