DEDHAM, Mass., June 7, 2023 /PRNewswire/ — Aggressive outbound marketing, conflicting opinions on qualifications, and risk of audit – Why are so many Small Business Owners missing out on the Employee Retention Tax Credit (ERC) program?
While ERC providers bombard business owners offering their service, too many qualified business owners are not applying for their earned ERC Business Tax Refund.
Several factors have contributed to this market inertia but is a shame for business owners to leave this money on the table. ERC experts are dedicated to helping business owners navigate the challenging application process, working directly with the IRS on their behalf to ensure they get the necessary credit they deserve.
Top 5 Reasons Business Owners have not filed for their Employee Retention Tax Credit (ERC) Refund.
1. WHO TO TRUST? Aggressive marketing has business owners scared of making the wrong choice. They should check BBB ratings, online reviews, and a firm’s experience dealing with the IRS. The best way to protect themselves is by utilizing a provider with knowledgeable tax attorneys on staff who review, approve, and provide audit protection on their submissions.
2. COMPLICATED CALCULATIONS: Business owners who filed for the PPP already have experience dealing with complicated paperwork. The ERC calculations and documentation are arguably more complex. They should consider hiring an experienced tax professional familiar with changes in federal legislation and state-by-state rules.
3. MISINFORMED ADVICE: Many choose not to pursue because “they made too much money”. This is a misnomer. ERC Qualifications are quarter-by-quarter and business performance varies, revealing qualifying quarters, regardless of annual performance. Initially, ERC was primarily available to businesses that experienced significant revenue declines, however recent legislative changes expanded the eligibility, making it easier for businesses, including restaurants, to qualify.
4. FEAR OF AUDIT: Submitting an ERC application is submitting an amended return. There are unqualified providers (ERC mills or scammers) submitting credits that are drawing further IRS scrutiny. Working with a trusted provider, and tax attorneys who sign the application, limits the business owner’s liability and provides audit protection.
5. TOO BUSY: This is a program with a fixed expiration date. Business owners who have applied are receiving checks from the US Treasury daily. These checks are not loans and can be used by the owner at their own discretion. Small business owners would be well served to prioritize this program to determine if they are eligible.
Given these factors, business owners looking to understand their eligibility for the ERC business tax refund program should consult with qualified tax professionals and stay updated on the latest legislation and application deadlines.
“The government approved a very generous and well-deserved program for small business owners who persevered through Covid-19 and the eligibility requirements have expanded over the last few months. It would be unfortunate if they miss out because of misinformation out there.” says Mike Forde, Managing Partner.
If you are unsure about your eligibility for the ERC or have been told otherwise, Five Star Tax – The ERC Consulting Experts offers expert guidance and resources to help navigate the intricacies of the credit. By leveraging their expertise, you can gain clarity and potentially unlock the financial relief your business deserves.
About Five Star Tax:
Five Star Tax – The ERC Consulting Experts is a group of business owners, tax attorneys, and financial advisors, dedicated to helping you navigate through this challenging application process. We use our expertise working with the IRS to ensure our clients get the help they need – and the largest credit possible.
The hardships of the pandemic are still felt today by business owners and is why we take pride in partnering with extensively experienced attorneys to get cases directly to the IRS.
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SOURCE Five Star Tax – The ERC Consulting Experts