Notice 2021-20 provides much anticipated guidance regarding the employee retention credit for 2020

Notice 2021-20 provides much anticipated guidance

The IRS on March 1, 2021, released an advance version of Notice 2021-20 as guidance regarding the employee retention credit (ERC) with respect to the 2020 calendar year.

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Although Notice 2021-20 formalizes much of the information included in previously issued “frequently asked questions” (FAQs) available on the IRS website, the notice contains further clarifications of the FAQs by constructing a safe harbor approach while also addresses recent retroactive changes regarding interaction with employers that received a Paycheck Protection Program (PPP) loan.

Read a March 2021 report [PDF 262KB] prepared by KPMG LLP that highlights some of the more significant clarifications in Notice 2021-20.

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