“Dear PoPville,
This is a long shot question, but after multiple discussions with my CPA and DC OTR, I am still at a loss. I have a small business and in January 2023 by the IRS we were notified that we received the Employee Retention Credit (ERC) for 2021. This is fantastic news, except now we have to refile our taxes.
DC has no guidance on how to treat the ERC. Speaking to the OTR, they recommend to follow the guidance in D-20, which references laws that discuss how to treat PPP loans and Unemployment under COVID, but not much on ERC. OTR also recommended we reach out to the Department of Audit, which we have done multiple times to no avail.
I am gathering from my discussion with other small business owners and CPAs that the ERC credit is not common. As a last ditch attempt before we refile, I wanted to ask the PoPville community if you received the ERC or have ideas on how to treat the credit on DC taxes, please share your experience. I am all ears!”
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