Could Twitchco Save Your ERC Refund from Tax?
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If you received an ERC refund—or expect one—you’ve probably heard the IRS’s position: report it as income in the year you receive the check.
But what if there’s a legitimate legal argument that challenges that position?
Here are three reasons this article deserves your attention:
- A little-known federal court case from more than 50 years ago may provide the legal foundation for a stronger ERC protective refund claim.
- The timing of when you filed your Forms 941-X—and even when you filed your income tax return—could make a meaningful difference in how strong your position is. The article explains why those dates matter.
- Tax Tip: The article doesn’t recommend simply ignoring the IRS. For most taxpayers, the suggested approach is to report the ERC refund as income, pay the tax, and file a protective refund claim that cites Twitchco as the supporting legal theory—preserving your rights if the courts ultimately reject the IRS’s position.
The law in this area is still developing, and this article explains both the opportunity and the risks—without overstating either.