There’s still time for businesses to claim the Employee Retention Tax Credit (ERTC/ERC), but many eligible businesses still haven’t done so. The question is – why? There are some specific reasons some business owners haven’t yet applied for the ERTC, and these common obstacles in filing for the ERTC could mean some employers are leaving serious money they’re entitled to on the table.
What Are the Common Obstacles in Filing for the ERTC?
There are lots of reasons some businesses that can claim the ERTC haven’t yet done so. A lack of awareness of the program and who qualifies is one of them.
Maybe you’ve heard of the Employee Retention Tax Credit, but some of the advertisements you’ve seen aren’t clear on eligibility requirements. Or maybe you think, based on what you’ve seen, that your business doesn’t qualify. This awareness problem is a major obstacle in helping more eligible business owners to file for the ERTC.
Then there’s the issue of the application process. If you have looked into the ERTC as a business owner, perhaps the many steps of the process seem overwhelming to you. The amount of information and documentation needed as part of that process is also a challenge that keeps some employers from claiming the ERTC.
Finally, worries about running afoul of the IRS may prevent some business owners from choosing to file for the Employee Retention Tax Credit. On September 14, the IRS announced “an immediate moratorium through at least the end of the year on processing new claims for the pandemic-era relief program” because of increased fraud concerns.
IRS Commissioner Danny Werfel stated in that announcement, “The IRS is increasingly alarmed about honest small business owners being scammed by unscrupulous actors, and we could no longer tolerate growing evidence of questionable claims pouring in.”
Concerns about turning in a “questionable” ERTC claim are certainly an obstacle in filing for the ERTC, especially with this increased IRS scrutiny. But this challenge – as well as the others mentioned – can be dealt with if you have the right ERTC team on your side.
How Can ERTC Filing Obstacles Be Overcome?
When it comes to the aforementioned obstacles, at Dayes Law Firm, we’ve got ways to deal with them all and to help you claim the ERTC if your business is eligible to do so.
For example, if you’re not totally aware of the requirements needed to apply for the Employee Retention Tax Credit, we can help. We can answer any questions you may have about the ERTC and your eligibility in a free, no-obligation consultation.
As for the application process and the amount of documentation needed to claim the ERTC, the team at Dayes Law Firm can help with that too! Our tax professionals have already helped clients receive over $250 million in funds for ERTC claims, and that involves helping business owners with every step of the process – from an eligibility evaluation, to gathering documentation, to double-checking that all of the necessary information is there before it’s sent to the IRS, and more.
Finally, concern over penalties from the IRS or a potential audit can be overcome, too. At Dayes Law Firm, we will defend any businesses we work with on an ERTC application when it comes to possible audits or if there is ever a request for an audit in the future.
Indeed, IRS Commissioner Werfel said as part of the moratorium announcement that when it comes to claiming the ERTC, “businesses should seek out a trusted tax professional who actually understands the complex ERC rules.” Dayes Law Firm can assist you with understanding the ERTC, claiming the tax credit, and with any possible audit issues you may face after filing your claim.
Please contact us by calling (800) 503-2000 today to learn more! Our team looks forward to hearing from you and we hope to assist you with your business’s unique Employee Retention Tax Credit needs.