The ERTC is a federal stimulus program designed for businesses that operated during the pandemic and maintained W2 employees.
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Yes. While a reduction in revenue is one mechanism of qualifying for the ERTC, it is not the only mechanism. The Nominal Impact Test may also be used, and this test incorporates more qualitative factors such as supply chain disruption related to government mandates.
Yes. Receipt of PPP loans does not disqualify a business from receiving the ERTC. However, all PPP funds that a business did receive, and applied to payroll expenses, must be properly accounted for prior to calculating the ERTC. This step is handled by tax attorneys as part of their detailed analysis of your business.
When a CPA deems a business to “not qualify” for the ERTC, it is almost always due to the CPA’s analysis of the Revenue Reduction Test. CPA’s, broadly speaking, have been less than enthusiastic to analyze businesses under the Nominal Impact Test and have left such analysis to tax attorneys specializing in the ERTC.
No. All of our work is performed on a contingency fee basis and you pay nothing until you receive your ERTC checks from the IRS. In addition, in the unlikely event of a subsequent IRS audit challenging our legal determination of your eligibility, our tax attorneys will provide a full defense of your ERTC claim at no additional fee.
No. The ERTC is intended for businesses the operated during the pandemic and maintained W2 employees. Only businesses that are directly related to federal or state government are ineligible. Private businesses from any industry, including non-profits, may qualify.
There are no minimum number of employees required to access the ERTC. However, the maximum number of employees a business may possess is 100 in 2020, and 500 in 2021.
The ERTC has evolved significantly since its inception and this evolution has resulted in confusion and misunderstanding of the program. Without following the details contained in hundreds of pages of the CARES Act, along with subsequent executive orders by both President Trump and President Biden, the opportunity in the ERTC can be easily missed.