As a business owner, you might be wondering why your accountant or CPA didn't tell you about the Employee Retention Credit (ERC) program, a federal initiative designed to help businesses during the COVID-19 pandemic. After all, many businesses could have greatly benefited from this program, which provides a refundable tax credit of up to $26,000 per employee.
The truth is that while many accountants and CPAs might have the ability to qualify your business for ERC, it's not always that simple. While qualifying for ERC by showing a decline in gross receipts in 2020 and 2021 compared to 2019 is relatively straightforward, using the third criteria - "Operational Disruption Due to Government Order"- can be much more complicated.
The CARES Act, which created the ERC program, is a massive piece of legislation spanning over 5,800 pages. The IRS tax codes relating to ERC are over 100 pages long. It takes an ERC expert to qualify for and maximize an ERC filing. The fact is that ERC is so new that most accountants and CPAs simply do not know the ins and outs of ERC. If they do know it, they only know a small piece of it and can leave hundreds of thousands or millions of dollars on the table for the business owner to not get.
This is why it's essential to work with an ERC expert when applying for this program. An ERC expert has a deep understanding of the program's rules and regulations and can help ensure that your business qualifies for the maximum benefit possible. They can also help navigate the complex process of applying for and receiving the credit, saving you time and stress.
If you feel that you may have missed out on the ERC program, don't worry. It's not too late to explore your options. Working with an ERC expert can help you determine whether your business is eligible for the credit and how much you may be able to receive. Even if your accountant or CPA didn't bring ERC to your attention, you can still benefit from the program with the right guidance.
In conclusion, while it may be frustrating to realize that your accountant or CPA didn't tell you about the ERC program, it's essential to understand that the program is relatively new and complicated. Working with an ERC expert can help ensure that your business is eligible for the maximum benefit possible, providing much-needed relief during these challenging times.