We hope this letter finds you well. We are writing to inform you of an important development that could provide an opportunity for both employees and employers based on employees who lived outside the city limits of St. Louis and have worked remotely for a St. Louis-based employer during the years 2020, 2021, 2022, or 2023.
This is the result of a recently settled lawsuit, whereas the City of St. Louis has allocated $26 million for refunds to taxpayers affected by its earnings tax policy. If you meet the eligibility criteria, you and certain employees could be entitled to a refund.
Important Refund Opportunity For Employees
Eligibility Criteria
To qualify for a refund, employees must:
- Live outside the city limits of St. Louis.
- Have worked remotely in 2020, 2021, 2022, or 2023.
- Be employed by a St. Louis City based employer.
Required Documentation
To apply for a refund, employees will need the following documents for each applicable tax year:
- E-1R Form: Available on the Collector of Revenue’s website.
- W-2 Form: One for each applicable year.
- Number of Remote Days Worked outside St. Louis city: “Employee Verification Section” on page two of E-1R Form must be completed, signed, and dated by your employer.
Application Process
- You can submit your refund application yourself or hire a tax professional to assist you. Your refund claims should be:
- Signed and mailed to: Gregory F.X. Daly, Collector of Revenue, 1200 Market St., Room 410, St. Louis, MO 63103.
- Attach to Form E-1R a copy of your Form W-2.
Important Deadlines
- For tax years 2020, 2021, and 2022: Claims must be submitted by September 30, 2024.
- For tax year 2023: The deadline is April 15, 2025.
Important Refund Opportunity For Employers
Refund opportunity in connection with payroll taxes previously paid
City-based businesses that have filed and paid payroll expense taxes on Form P-10 for tax years 2020 to date which include non-resident remote workers, may qualify for a refund.
Form P-10 Amendments:
To initiate this process, please submit a written refund request on company letterhead for the amount being requested based on the amended P-10’s. Enclose along with the letter:
- Amended P-10 return (s) with the revised amounts and documentation supporting remote work claims (such as a list of non-resident employees and their wages),
- Sign and mail to the Collector’s office on Market St. (listed previously)
Form E-234 Amendments:
City businesses that allocated payroll expenses including non-resident remote workers may be required to amend City E-234 to reflect the revised allocation of City vs. non City wages, which may result in taxes owed to the City.
To proceed for us to assist in the business return amendments, if necessary, please provide:
- Amended P-10 claims for the relevant tax years
- Revised payroll allocation figures, based on the corrections substantiated with your P-10 claims
Important Deadlines
- For tax years 2020, 2021, and 2022: Claims must be submitted by September 30, 2024.
- For tax year 2023: The deadline is April 15, 2025.
- For 2024, Employers should check their withholding for remote workers for possible corrective action.
Important Note
It’s important to note that the process for amending the Employer P-10 claims do not depend on whether employees have received their refunds through the E-1R process. While employees’ refunds are a separate matter, businesses can proceed with amending the P-10 claims.
However, if you file and receive P-10 refunds, please notify us to determine if your business E-234 requires amendment. The City has confirmed that penalties and interest will not be assessed on amended taxes owed, if applicable.
We are here to help you navigate this process. Should you have any questions or require assistance, please do not hesitate to contact us.
Sincerely,
Abeles and Hoffman, P.C.
