IRS Guidance on Selecting the Right ERC Partner

Dear Friends,

On October 10th, 2022, the IRS warned employers to be wary of third parties promoting improper Employee Retention Credit claims.

We stand with the IRS echoing the importance of properly qualifying a business for program eligibility, along with fully understanding the financial implications and required tax filings.

We know how valuable this sort of financial relief is to the honest, hardworking businesses that survived the pandemic and are still employing people across America. It is imperative that employers seek out qualified experts who can help them to determine eligibility and proper computation of the credit.

In the case of Innovation Refunds, we formed strategic partnerships with tax attorneys and CPAs to perform a thorough analysis, upfront and at our expense, to ensure that only qualified businesses claim this payroll tax refund. Our bank and financial institution networks help us further understand the complexities of the businesses coming through those channels.

How does Innovation Refunds go about this? We assist our customers in gathering an extensive list of documents including, but not limited to:

  • 941 tax documents for 2019/20/21
  • Profit and Loss statements
  • Payroll ledgers
  • Healthcare statements
  • PPP loan applications and forgiveness documents
  • Impacts from COVID on the business
  • Orders by local, state and federal governments that impacted these businesses

What do our tax attorneys, CPAs, and other tax preparers do? They review each situation in accordance with the law and ultimately decide on eligibility on a quarter-by-quarter basis. They analyze topics like:

  • Clients’ COVID narrative, impacts from COVID on the business, and orders by local, state, and federal governments that impacted the business
  • Ensure that any PPP loans to payroll for covered periods are excluded from an ERC by reviewing PPP loans, payroll, and the covered periods and ensure the proper allocation of credits
  • Inform clients that they must amend their tax returns once they receive the credit from the IRS 

We know our clients are well cared for because our strategic partners are skilled at interpreting and applying the law.

Together, we stand behind all our work with comprehensive audit protection. As part of audit protection, we represent our clients through the completion of any audit relating to the work done with respect to the ERC credit filed on their behalf. Business owners should avoid unscrupulous service providers who do not guarantee the integrity of their and their partners' work.

We are committed to keeping you informed about these important matters. We invite you to contact us at if you have any questions or need further information.

Thank you,

Howard Makler

Chief Executive Officer

Innovation Refunds, LLC

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