There’s Still Time!

Businesses that meet the requirements and are eligible for both 2020 and 2021 could be looking at up to $26,000 per employee  ($5,000 for 2020 & $21,000 for 2021).
 

There are a couple ways to qualify for the ERTC:

About the Credit

The R&D Tax Credit (26 U.S. Code §41), also known as the Research and Experimentation (R&E) tax credit, is a federal benefit that provides companies dollar-for-dollar cash savings for performing activities related to the development, design, or improvement of products, processes, formulas, or software.

Benefits:

  • Credit Against Tax Owed. NOT a deduction.
  • Federal credits can be as much as 14% of qualified costs.
  • Credit is a choice of calculations based on expenditures associated with qualifying activities.
  • The credit can be claimed every year and for up to 3 prior tax years. Amend 3 years back from filing

2. Government related full or partial suspension of business

  • A government authority required partial or full shutdown of your business during 2020 or 2021.
  • This includes your operation being limited by commerce, inability to travel, or restrictions of group meetings

Things to Consider

  • ERTC was expanded on January 31, 2021 by Congress which expanded the qualifications
  • The ERTC tax credit time frame is March 13, 2020 to September 30, 2021.
  • 20% of ERTC claims are being rejected due to incorrect filing
  • PPP loans do not exclude businesses from ERC tax credit opportunities.
  • Companies taking the R&D Tax credit are not excluded
  • If you acquired a company between 2019 and 2021 might still qualify
  • When comparing gross receipts keep in mind your company's accounting method
  • Supporting documentation is required
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Our Services Include

  • We will provide detailed work papers documenting the qualification of the taxpayer for ERC purposes and the eligibility of wages and salaries used in the calculations.
  • We will also provide work papers documenting the ERC calculations, including employee-by-employee analysis of the credit and related nonrefundable wages.
  • Line by line amounts for claiming the ERC on amended forms 941x
  • If you are claiming the credit for Government related orders, we will gather and provide in depth documentation and supporting evidence specific to your situation.
  • Assistance filing the 941X forms which are paper filed
  • Audit support in the event of receiving an Information document Request (IDR)

Our Fees are fixed and determined on a client-by-client basis