I timely filed 2020 tax returns: both 1120S for my S-Corp and thereafter my personal 1040 forms. I later learnt about the 2020 ERC and applied for it later. After I receive the 2020ERC funds, I understand I need to :
- reduce the 2020 wages deduction on my 1120S (to avoid double dipping ), without changing wage reports such as W2, 941, 940
- revise my 2020 personal tax form 1040 since the K-1 will change. I will owe more personal taxes
Two foreseeable problems;
. The regular time limit for amending 2020 returns is over. Does IRS extend the time period and if yes, how?
. If I now owe more personal tax, will I be penalized with late fees and interest?
Is there an easier way to avoid double-dipping?