The Employee Retention Credit – Evaluating your Business’s Eligibility

The Employee Retention Credit (ERC) is a refundable tax credit for businesses that continued to pay employees while operations were suspended due to government orders or that experienced significant declines in gross receipts due to the COVID-19 pandemic from March 13, 2020 to Dec. 31, 2021. If eligible, employers can claim the ERC on an original or adjusted employment tax return for applicable quarters within the specified time above.

The IRS recently issued a warning to businesses who have or are currently engaged by aggressive third-party ERC schemes and promotions. These promotors push to file claims while charging excessive fees. It has been found that they also improperly advise the business on ERC guidelines that may otherwise cause them to be ineligible. Because the IRS is actively auditing and conducting criminal investigations related to false claims, the IRS advises careful review of ERC guidelines and recommends businesses consult with a professional about the accuracy of their claim before filing.

The ERC can provide your business with significant financial relief if eligible. If your business is considering applying for ERC, Dvorak Law Group and its team of professionals are available to properly advise you on ERC guidelines and review applicable governmental orders. We have significant experience analyzing and applying governmental authority that arose out of the pandemic (including the Payment Protection Program, or PPP) and are prepared to provide analysis to your business’s facts and circumstances. Please contact our team to assist with your claim.

If your company has engaged with a third-party promoter and you have concerns about the process, our team can review your documentation and provide our analysis of the application.

Dave Mayer