Eligibility is based on clear objective eligibility criteria based on declines in revenue and full or partial suspension of business operations due to the pandemic. If a business meets these criteria, they are entitled to claim a credit regardless of other incentives received.
The credit can help maintain jobs and support the economy. There are no unethical reasons not to apply if you meet eligibility criteria. Each business should evaluate their unique situation and weigh the potential benefits and drawbacks of claiming a credit based on their specific circumstances. The money is available if your business meets the criteria.
Once all the necessary paperwork has been filed, the IRS typically takes 6-8 weeks to process Form 941, your Quarterly Federal Tax Return, which is used to claim the ERC. Processing time may vary if the claim requires additional review, the IRS requests additional documentation, or the eligible refund exceeds a specified amount.
While the answer is yes, the program’s complexity and evolving guidelines can make it challenging to understand the eligibility for credit, calculate the accurate amount, and fill out the necessary forms and documentation. Managing complex calculations and ensuring compliance with other federal relief programs may result in inaccurate claims. In addition, the ERC application process can be time-consuming and requires a significant amount of paperwork and documentation that may result in process inefficiencies, delays, and errors. CPA firms may not specialize or have the capacity to add ERC processing to their existing business. Businesses should work with an ERC processing service that fully understands the guidelines and criteria to maximize their eligible credit amount and process the necessary documentation accurately and in a timely manner, thereby providing peace of mind that they are taking full advantage of the tax credits available to them.