The IRS has offered clarification on the interaction of the COVID-19-related Employer Retention Credit (ERC) in acquisitions. Under the law, if an employer receives a Paycheck Protection Program (PPP) loan, it may not receive an ERC. In an updated set of FAQs, the IRS has provided guidance focused on ERC eligibility if an employer acquires the stock or assets of a target employer that received a PPP loan. The bottom line is, subject to certain limitations, the acquiring employer’s ability to claim an ERC won’t be adversely affected by the acquisition. For more information, see FAQ #81a here: https://bit.ly/37nAhKK Call or visit our website for more information! www.mjscpa.com/
