ERC, tax periods to reduce payroll expense

Technical topics regarding tax preparation.
#1
EADave  
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Hello all, I have a general question about the ERC, and how it works to reduce the company's payroll expenses. If the ERC is obtained for tax year 2020, but received in 2021 by a cash basis taxpayer, will the credit reduce payroll expenses for the company on the 2020 tax return or the 2021 tax return?

Or has the IRS not released guidance on this issue?
 

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