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If you’ve heard about the Employee Retention Credit (ERC) and the positive impact it could have on small to medium-sized business, it’s likely that you’ve already begun investigating the process for determining eligibility and filing your ERC refund paperwork with the IRS.
However, the process of recovering a payroll tax refund from the IRS can be daunting, which is why we recommend hiring a business that knows the ins and outs of the ERC.
Here are three considerations to keep in mind when searching for the right ERC company to partner with.
Why you may choose to work with an ERC company
If filing on your own, you could come across several hurdles:
Is my business eligible for the ERC refund?
Due to multiple changes to the original legislation, it can be difficult to determine your business’ eligibility for the ERC. An ERC company will have a process to see if you meet eligibility requirements. Companies should be open and honest about this process, so you’ll know if your business meets eligibility requirements.
What are the current ERC documentation requirements?
The documents needed to claim the Employee Retention Tax Credit have changed. Since the ERC program is no longer active, you must now use Federal Form 941-X to make corrections to your original Employer’s Quarterly Federal Tax Return (Form 941). You must file a separate 941-X for each quarter you are eligible for the refund. The IRS can only process the ERC refund if you have provided all required documentation.
What if my paperwork isn’t accurately filled out?
If there is missing or incorrect information, your ERC application may be rejected or sent back with a request from the IRS that you correct any mistakes. While this isn’t the end of the world, it could extend the time it takes to recover a payroll tax refund.
3 questions to ask when selecting an ERC company
It’s important that you do your homework before asking any company to help you determine eligibility to claim your business’ refund. Working with an ERC company can help eligible businesses get the refund in a simple and efficient manner. Consider asking these questions:
Who is on your team?
An ERC company should have a team that understands the complicated nuances of recovering payroll tax credits. Companies that have strategic partnerships with banks and qualified tax professionals (including a network of independent tax attorneys and CPAs), and are dedicated to helping small business owners should be able to answer this question with ease.
The team here at Innovation Refunds
Your selected ERC company should have your business’ best interests in mind. This means everything from maintaining consistent communication to having a dedicated team assigned to your business. At Innovation Refunds (IR), we fully embrace the ERC legislation and strive to help small businesses recover from COVID-19 by assisting with the refund process. A few facts about us:
● IR is a trusted strategic partner of over eighty banks.
● IR has a team of over 100 refund specialists who collaborate with a network of independent tax attorneys and CPAs.
● IR has an organized approach to ensuring constant communication between your business and your assigned refund specialist.
What are your fees?
We will not ask for upfront pay, hourly pay, or communication fees.
Our compensation model and policies
Once engaged in recovering your business’ refunds, our fee is 25%. You will never come out of pocket to pay our fee. Not only does IR handle all up-front costs even, we only get paid when your business receives its refund.
What is your company’s ERC Refund track record?
Given the sensitive nature of adjusting and correcting documents submitted to the IRS, working with a company that has a proven track record of success is important. They should be able to estimate your business’ potential refund. They should also have rave customer reviews and ratings.
Our track record
Innovation Refunds’ network of tax attorneys and CPAs will assist your business in receiving an eligible refund. To date, IR's network of independent tax attorneys have processed thousands of claims for small businesses nationwide. This is what some business owners have said about working with us:
“When Covid hit my business, we were uncertain of how we would be able to keep our employees working and supporting their families while maintaining a business. Then Innovation Refunds got me approved for a payroll tax refund, and that money was able to reinvest in our employees that were able to stay with us during such a difficult time.” — Brian O’Brien, Beam Vacuums
“When Covid hit my business, production slowed down. We were unable to give employees bonuses. Innovation Refunds got me approved for a payroll tax refund and with that money, it allowed me to pay off debt and give my employees bonuses.” — Dennis Brewer, IPM Services
“When Covid hit my business, everything shut down. Revenue, phone calls, all business. The new cost of operating during Covid hit hard too; I had to personally fund my business. Innovation Refunds got me approved for a payroll tax refund. That money allowed me to recoup losses and costs, even when I had positive income in the later quarters of Covid recovery.” — Evan Levow, Levow DWI Law
Get started with an ERC company today
At IR, our team of independent tax attorneys and professionals will work with you every step of the way to claim an eligible business’ ERC refund. It’s easy to get started and see if you qualify for ERC assistance. Get started now to check your eligibility.