IRS shares 5 warning signs that Employee Retention claims may be incorrect. As stated in IR-2024-78, the IRS is currently in the process of reviewing $3 billion in claims and plans to ramp up the sending of disallowance letters and audit notices in the coming months.
A tentative bipartisan agreement to end the Employee Retention Credit early has been reached. With the incentive set to expire sooner than expected, businesses shouldn’t miss the only opportunity to claim up to six figures in refunds.
To help you cut through the noise, we’re debunking the most common misunderstandings currently circulating in the ERC world. You should know that:
We are the leading experts in tax credits and incentives. Since 2002, we have helped U.S. businesses grow their operations and stay ahead of the competition. To date, we have delivered billions in refunds to over 27,000 businesses.
Our professionals know your business inside and out and know what qualifies to ensure the most lucrative refund. No other firm offers professionals versed in your industry.
Our former commissioners are the preeminent experts on IRS policy and ensure our practices and procedures align with the service’s expectations. No other firm offers this level
of oversight.
Our former policymakers understand the intent of tax law and why they apply to your business. As part of our team, they advocate for our clients and help them take advantage of federal funds. No other firm understands tax law to this extent.
Former IRS Commissioner; alliantgroup Vice Chairman
Former IRS Acting Commissioner; alliantgroup National Director of Tax
Former IRS Commissioner of the Small Business/Self Employed Division; alliantgroup National Director of Compliance
Former IRS Commissioner of Small Business/Self-employed Division (SB/SE); alliantgroup Director of IRS Practice & Procedure
Here are some impacts to consider that help you determine your business’s eligibility for the ERC:
While the ERC is a federal mandate, individual states may also offer their own versions of the credit. For example, California has its own version of the ERC called the California COVID-19 Supplemental Paid Sick Leave (SPSL), which provides up to two weeks of paid sick leave for certain workers affected by COVID-19. Other states may have different eligibility requirements and credit amounts, so it’s important for employers to check with their state’s labor department for specific guidelines.
We’ll help determine your eligibility, document your processes, and maximize your return for no upfront fees! Complete the form below to estimate your refund.
We actively work with business owners in every industry to help them claim this lucrative tax break, but not every business qualifies and we have rejected 1/3 of the claims we’ve reviewed because they fall short of IRS standards. Our team includes industry experts and former IRS commissioners bring insights that allow us to better assess if you qualify for this credit.
Contact us to receive more information about the Employee Retention Credit
Putting it simply, the Employee Retention Credit (ERC) is exactly what it sounds like—business owners are being rewarded for their efforts to keep employees on payroll during the pandemic. We are working closely with decision-makers in Washington on this nationwide effort to help the U.S. economy not only recover from the pandemic but come back stronger than before.
The ERC has gone through significant updates, so even if you or your tax advisor have reviewed this credit before, we encourage you to take another look with one of our specialists. Unfortunately, the program is not yet living up to its full potential because many business owners are prematurely disqualifying themselves due to misinformation and rumors about who does or doesn’t qualify.
The overarching theme for businesses to focus on is how the coronavirus pandemic impacted our economy as a whole… so even if your business grew or was deemed an essential business during the pandemic, there are more qualifying factors to look at before you disqualify yourself.
This payroll tax credit is available to essential and non-essential businesses in any industry that endured the effects of the pandemic. Government orders—on federal, state, and local levels—are a major factor that many business owners had to adapt to over the last year and a half. Examples of affected businesses include a restaurant that could not let customers dine indoors or a manufacturer that had to slow their operations due to new health and safety restrictions.
Since Congress passed the latest relief bill, we’ve helped many businesses and their tax advisors reduce or eliminate the payroll tax, and even receive a refund. It’s important to review your impact and file with our team before the upcoming deadline. We have 800+ experts with hands-on experience working in every industry. Our specialists are passionate about helping U.S. businesses and work closely with you and/or your financial advisors to maximize your credit while minimizing risk.
In addition to helping you claim the ERC, we will also review your business activity in relation to other credits you may qualify for to uncover more funding opportunities for your business to hire/retain more employees and invest in the capital necessary to grow your business.
We are committed to reinforcing our economy and believe in the spirit of American business owners. We want to ensure nothing gets in the way of our country becoming #1 once again—not even a global pandemic!
In response to the rapid effects of the pandemic on our economy, the CAA was revamped in 2021. This was officially approved and signed by President Biden on March 11, extending deadlines and eligibility requirements for the ERC and other incentives. Another exciting update is the fact that businesses can now claim the ERC credit alongside PPP and other paycheck protection programs. Even if you already claimed PPP and got your loan forgiven, you still qualify for this tax credit!
Small and medium-sized businesses make up over 99% of all U.S. businesses in the U.S. When big players like Google, Apple, and other large companies are the only ones thriving, our economy is not in a good place. In 2021, the new COVID relief bill expanded the guidelines to help more businesses qualify. Even if you are in losses or do not have a tax liability, you can still benefit.
The ERC tax credit was revamped in 2021 to reach more businesses and help more Americans stay employed. This is achieved by providing a refundable credit to offset or potentially eliminate federal payroll tax for business owners who were impacted by the pandemic. This is currently one of the largest credits available to business owners, delivering thousands of dollars in tax credits per employee with qualified wages.
A manufacturing company with annual revenue of $115 million and 246 employees received a credit equal to $1.06 million in Q1 of 2021.
A few of their qualifying factors: