ERC, Amended Returns & CF Losses

[G2R]

1120S Corporate return for 2021 showed a loss $20k. They didn't have the basis to take the full loss in 2021 so $15k was CF to 2022.  In 2022, they show a profit of $20k so the CF loss is fully used in 2022.

Then they file and receive the ERC for 2021 and receive $12k.  ugh. Amending the 2021 1120S to include the ERC, doesn't change the SH personal return at all because the basis still limits the recognizable loss to $5k.  However, it does change their 2022 personal return because there was less CF loss to absorb the 20k profit.  

I assume I have to

• amend the 2021 1120S to reflect the ERC.
• amend their 2022 personal return to reflect the CF loss adjustment. 

Is there any need to amend the 2021 personal return to reflect the change in the 7203 CF info?

[Lee B]

If it was my client I would just show the adjusted CF on the 2022 1040.

[BulldogTom]

18 minutes ago, cbslee said:

If it was my client I would just show the adjusted CF on the 2022 1040.

I agree with cbslee.   However, if the client is a PITA....extra fee for amending the personal.

Tom
Longview, TX