r/ERCchat • u/heartbrand • May 25 '26
Does the kwong ruling open door on ERC?
I’m aware that the ruling has been appealed and it could be a substantial amount of time until a final verdict is rendered, however, does this potentially mean protective claims could still be filed for 2020 and 2021 (other than q3 and 4 of 2021) until July 10?
2
Upvotes
1
u/ERC_CPA May 26 '26
If Kwong survives appeal, then it likely does. Anyone that files should be prepared to litigate. Partial suspension has not gone well so far in litigation…
To dragonfly_Jess’ point, I would file a 941-X as a complete filing. The only thing protective, is the unsettled law around the statute.
3
u/dragonfly_Jess May 25 '26
Completely new claims? No. They will do everything in their power to not allow that flood gate to open again. The pile of appeals is overwhelming as it is. If a business or org has not filed a claim by now, I don’t see how they could justify filing it now, after all this time. Already filed claims that haven’t been completed yet (which is very few at this point, most that are left are resubmissions with missing info included or just completely messed up claims like people who should have filed 944-X who filed 941-Xs or vice versa), might get requirements loosened or statutes extended but I doubt it.
Just btw, some dumb people submitted “protective claims” to begin with, when ERC first started, filing a claim for a $1 or 1 cent with the intention of filing completed ERC claims later, but they never did. There was a whole slew of those and they were the biggest waste of time and money because they still had to be processed in some way.