If you haven’t yet taken advantage of the Employee Retention Tax Credit (ERTC), you’re not alone. According to the National Federation of Independent Business (NFIB), only 8% of small business owners claimed the pandemic-era tax credit in 2020. 

The good news is that it’s not too late to file a claim for the ERTC. If you qualify, you have until April 15, 2024, to file 2020 ERTC claims and until April 15, 2025, to file 2021 claims.

If you’ve heard anything about the complex tax credit regulations and ongoing ERTC scams, however, you may be wondering what ERTC tax attorneys have to say about the program. Here is more information about the ERTC from the ERTC team at Dayes Law Firm.

Your Business Must Meet Certain Eligibility Requirements

To qualify for the tax credit, your business must meet the eligibility criteria. These regulations are not simple to understand, and there are different rules for 2020 and 2021. Experienced ERTC counsel can help you evaluate whether your business qualifies, but you generally must have kept your staff on the payroll, and have no more than 500 employees for 2021 (100 employees for 2020).

You must also have experienced one of the following:

  • A complete or partial business closure due to a government order related to COVID-19
  • At least a 20% decline in revenue in 2021, or a 50% decline in 2020

This complex tax credit also has rules and conditions regarding how to calculate qualified wages and maximum credit amounts, and how to legally take advantage of the ERTC and the PPP (Paycheck Protection Program). If this slew of complex requirements sounds overwhelming, consult with ERTC attorneys prior to submitting your claim. This way, a tax professional can review your claim to confirm that you don’t make any mistakes.

The ERTC Is Not a Scam — But There Are Plenty of ERTC Scams

The ERTC is a legitimate government program offering fully refundable payroll tax credits to qualifying businesses. However, ERTC tax attorneys know that unethical promoters have seized upon the opportunity to trick business owners into improperly applying for the credit. These scams have become so common that the IRS has issued multiple warnings to taxpayers to be aware of ERTC promotions.

Some con artists charge fees upfront without properly explaining the qualification requirements or verifying whether your business meets them. 

Be on the lookout for ERTC scams in the form of aggressive phone calls, texts, or emails from people you don’t know. If you notice high-pressure language encouraging you to act immediately, that’s a red flag.

A Qualified Tax Lawyer Can Help You Negotiate Complex ERTC Regulations

Many ERTC promotional tactics tell business owners they have nothing to lose, but this is not true. Improperly claiming the ERTC can have serious consequences. As legal advisors for ERTC claims know, if your business incorrectly collects the credit, you may have to pay it back — in addition to potentially significant interest and penalties.

This is one of the many reasons to work with tax lawyers for the ERTC to claim your credit. They can make sure you meet the eligibility requirements, collect the maximum amount you qualify for, and help you avoid potential pitfalls along the way.

Contact Dayes Law Firm for Help With Your ERTC Claim

The experienced ERTC tax attorneys at Dayes Law Firm can walk you through the process and answer any questions you have. Even if you’ve already worked with an unscrupulous promoter or scammer, we can help you try to fix any mistakes they may have made.

For a free ERTC tax consultation for your business, contact Dayes Law Firm. Call us at 800.503.2000.