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On Thursday, the IRS introduced certain criteria that, if satisfied, allow a small business to withdraw a prior claim for the Employee Retention Tax Credit (ERC). Certain businesses paying wages to employees during the COVID-19 pandemic and experiencing a “significant decline in gross receipts” were eligible to apply for the ERC. 

In September, however, the IRS stopped processing ERC claim applications in light of a “surge of questionable claims.”

Under the new withdrawal process, a small business can ask the IRS to not process its entire adjusted employment tax return for the tax period including the ERC claim if all of the following criteria are met:

  1. The business made the claim on an adjusted employment tax return (which includes Forms 941-X, 943-X, 944-X, CT-1X).
  2. The adjusted employment tax return was filed only to claim the ERC, and no other adjustments were made.
  3. The business wants to withdraw the entire amount of its ERC claim.
  4. The IRS has not paid the claim; or, if it has, the business has not cashed or deposited the refund check.

If you filed an ERC claim and have questions about navigating the new withdrawal process, please contact Leon Rittenberg III, John Rouchell or Robert “Bob” Angelico.

Disclaimer: This Blog/Web Site is made available by the law firm of Liskow & Lewis, APLC (“Liskow & Lewis”) and the individual Liskow & Lewis lawyers posting to this site for educational purposes and to give you general information and a general understanding of the law only, not to provide specific legal advice as to an identified problem or issue. By using this blog site you understand and acknowledge that there is no attorney-client relationship formed between you and Liskow & Lewis and/or the individual Liskow & Lewis lawyers posting to this site by virtue of your using this site. The Blog/Web Site should not be used as a substitute for legal advice from a licensed professional attorney in your state regarding a particular matter.

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Tags: business, Covid-19, tax
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Photo of Leon H. Rittenberg III Leon H. Rittenberg III

Leon Rittenberg III is a New Orleans native. His practice focuses on serving the needs of small and mid-sized businesses and their owners; including philanthropy and non-profit law, taxation, finance, private equity, estate planning, probate, real estate, mergers and acquisitions and related matters.

Leon Rittenberg III is a New Orleans native. His practice focuses on serving the needs of small and mid-sized businesses and their owners; including philanthropy and non-profit law, taxation, finance, private equity, estate planning, probate, real estate, mergers and acquisitions and related matters. Leon represents the interests of a number of private investors, oil service businesses, marine transportation companies and physician groups. He is a Board Certified Tax Specialist and Board Certified Estate Planning & Administration Specialist, as certified by the Louisiana Board of Legal Specialization. He frequently lectures in areas such as taxation, estate planning and maritime transactions.

Leon is a Fellow of the American College of Tax Counsel. He has been recognized by Chambers USA (Louisiana Marine Finance – 2021; Louisiana Corporate/M&A: Tax section – 2017), Louisiana Super Lawyers (Tax, Estate Planning & Probate and Business/Corporate), and the Best Lawyers in America (Non-Profit/Charities Law and Trusts & Estates) since 2007, and by New Orleans Magazine as one of their “Top Lawyers of New Orleans” for his work in Equipment Finance Law, Mergers & Acquisitions Law and Tax Law. New Orleans City Business selected him for their Leadership in Law class of 2014, which “identifies and honors 50 outstanding legal professionals whose successes in law and contributions to the community have set the pace for the legal community.”

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Photo of John Rouchell John Rouchell

John Rouchell’s practice covers all aspects of state and federal tax law, as well as corporate and business law, estate planning and administration. He also represents authors, artists, and musicians in the New Orleans area, including his only child, John Michael, a professional

…

John Rouchell’s practice covers all aspects of state and federal tax law, as well as corporate and business law, estate planning and administration. He also represents authors, artists, and musicians in the New Orleans area, including his only child, John Michael, a professional musician and songwriter since the age of thirteen. John is a Board Certified Estate Planning & Administration Specialist and a Board Certified Tax Specialist – as certified by the Louisiana Board of Legal Specialization.

John is a Fellow of the American College of Trust and Estate Counsel. He has been recognized by Louisiana Super Lawyers in Estate Planning & Probate and Tax since 2007 and by the Best Lawyers in America in Business Organizations, Closely Held Companies and Family Businesses Law, Corporate Law, Elder Law, Tax Law, Trusts & Estates since 1995. New Orleans Magazine has also recognized John as one of their “Top Lawyers of New Orleans” for his work in Elder Law, Tax Law and Trusts & Estates since 2013.

John is a New Orleans native and Jesuit High School graduate. He attended Tulane University receiving a bachelor’s degree in English. He received a J.D. at Tulane Law School in 1976 and attended New York University where he received a LL.M. in Taxation in 1977. Prior to joining Liskow, John was a partner at Baldwin Haspel Burke & Mayer.

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Photo of Robert S. "Bob" Angelico Robert S. "Bob" Angelico

Bob Angelico is a nationally known business lawyer with years of experience helping top-tier companies with sophisticated state and local tax issues throughout Louisiana.  As the head of the firm’s tax practice group, Bob works to minimize the taxes of his clients, which…

Bob Angelico is a nationally known business lawyer with years of experience helping top-tier companies with sophisticated state and local tax issues throughout Louisiana.  As the head of the firm’s tax practice group, Bob works to minimize the taxes of his clients, which include manufacturers, retailers, wholesalers, non-profits, construction businesses and other entities of all types and sizes.

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Photo of Benjamin "Ben" M. Parks Benjamin "Ben" M. Parks

Ben Parks is an attorney in the firm’s Business Law practice group.

During law school, Ben was a member of the Louisiana Law Review, where he served as Development Editor. Ben also served as judicial extern, in the United States District Court for…

Ben Parks is an attorney in the firm’s Business Law practice group.

During law school, Ben was a member of the Louisiana Law Review, where he served as Development Editor. Ben also served as judicial extern, in the United States District Court for the Middle District of Louisiana, to the Honorable Brian A. Jackson.

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