When you file an amended return, you’re actually making a claim for refund. Tax professionals have been filing (for their clients) amended payroll tax returns (Form 941) to obtain the Economic Recovery Credit (ERC). I’ve done two (so far), and have a few more to go. Another tax professional filed one claiming a $19,746.61 refund. The IRS partially disallowed it, so a five-page letter was sent.
The disallowance? 11ȼ. No, you didn’t misread it: eleven cents.
Why, IRS, are you doing this? This is the literal example of penny-wise and pound-foolish. I wish I could tell you why this is happening, but….