Timing is of the essence as you only have up to 30 days to initially respond. Immediately contact SaveMyERC for guidance through the initial assessment and document preparation for a robust response.

We compile necessary documentation, ensure compliance with guidelines, and represent your interests directly with the IRS.

Before we can know if we can help you, you will need to provide us with answers to the following questions:

• Have you been contacted by the IRS concerning your ERC claim?
• Did you pay for assistance in completing your ERC Filing?
• Do you have copies of all documents related to the original ERC filing with the IRS?
• How were you qualified to file for the ERC?
• What is your Tax Entity?
• What was the Average FTE for 2019? (An FTE is defined as employees who work at least 130 hours per month or at least 35 hours per week.)
• Are you current on your payroll tax liability with the IRS?
• Are you current on filing your W-2 forms for 2020 and 2021?
• Do you file your payroll taxes through a PEO? Or Directly to the IRS on Form 941?

The IRS has announced it will use a portion of its recently appropriated $85 million enforcement funding to train agents to conduct ERC audits. Unqualified or under-qualified claims will most likely result in drastic reductions to the improperly obtained credits, which can cost the filer significantly. Discrepancies in calculations, eligibility misunderstandings, or incomplete documentation are common reasons, which we help identify and correct.

We conduct thorough reviews against the latest IRS guidelines, ensuring your business remains fully compliant.

Unfortunately, the Voluntary Disclosure Program (VDP) closed on March 22, 2024. However, the IRS website indicates that they might reopen this program later.

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An ERC audit will most likely be more comprehensive than a traditional audit. The agency may request a considerable amount of documentation, including:

• Official government orders that halted your business operations.
• Documentation you used to determine if the government’s orders resulted in the suspension of a significant portion of your operations.
• Proof of your significant decline in gross receipts.
• Work and payroll records that show employee wages were paid.
• Documentation supporting the amount of allocable qualified health plan expenses.
• Copies of applicable federal employment tax returns, including Forms 941, 941-X, and W-2.

Yes, we review your claim to correct potential issues and ensure it meets all IRS guidelines.

1. Large vs. small employer qualification. The amount of the credit is based on eligible wages paid to employees. Therefore, the IRS will likely focus on whether your business correctly identified its employee count and correctly classified employees as full-time or part-time.
2. Gross receipts. The IRS will want to know whether you calculated gross receipts correctly. To be eligible, you should have seen a decline in gross receipts of more than 50% in any quarter in 2020 or more than 20% in any of the first three quarters in 2021.
3. Suspension of operation. The IRS will want to see documentation to support your claim that government orders to limit commerce, travel, and large gatherings had more than a nominal effect on your business, as well as evidence that your employees could not work comparably online.
4. Aggregation. The aggregation rules are complex. The IRS will want to know that you applied the rules correctly. Better yet, they will want to know you worked with an experienced advisor.
5. ERC Calculation. The IRS will want to see documentation to support your calculation. They’ll also want to ensure you maintained adequate records to substantiate your eligibility.

From the IRS website, here are some of the common red flags being seen on ERC claims that the IRS is focusing on:

• Too many quarters being claimed. Some promoters have urged employers to claim the ERC for all quarters that the credit was available. Qualifying for all quarters is uncommon, and this could be a sign of an incorrect claim. Employers should carefully review their eligibility for each quarter.
• Government orders that don’t qualify. Some promoters have told employers they can claim the ERC if any government order was in place in their area, even if their operations weren’t affected or if they chose to suspend their business operations voluntarily.
• Too many employees and wrong calculations. Employers should be cautious about claiming the ERC for all wages paid to every employee on their payroll. The law changed throughout 2020 and 2021. There are dollar limits and varying credit amounts, and employers need to meet certain rules for wages to be considered qualified wages, depending on the tax period.
• Business citing supply chain issues. Qualifying for ERC based on a supply chain disruption is very uncommon. A supply chain disruption by itself doesn’t qualify an employer for ERC. An employer needs to ensure that their supplier’s government order meets the requirements.
• Business claiming ERC for too much of a tax period. It’s possible, but uncommon, for an employer to qualify for ERC for the entire calendar quarter if their business operations were fully or partially suspended due to a government order during a portion of a calendar quarter. A business in this situation can claim ERC only for wages paid during the suspension period, not the whole quarter.
• Business didn’t pay wages or didn’t exist during eligibility period. Employers can only claim ERC for tax periods when they paid wages to employees. Some taxpayers claimed the ERC but records available to the IRS show they didn’t have any employees. Others have claimed ERC for tax periods before they even had an employer identification number with the IRS, meaning the business didn’t exist during the eligibility period.
• Promoter says there’s nothing to lose. Businesses should be on high alert with any ERC promoter who urged them to claim ERC because they “have nothing to lose.” Businesses that incorrectly claim the ERC risk repayment requirements, penalties, interest, audit and potential expenses of hiring someone to help resolve the incorrect claim, amend previous returns or represent them in an audit.

We analyze eligibility based on IRS standards, recalculate your credit using accurate payroll data, and ensure all qualifications are met.

Such claims can lead to penalties or audits. We help accurately document and substantiate claims to avoid or rectify issues.

The process varies but typically spans several months, involving document review, inquiries, and possible adjustments. We keep you informed throughout.

We present well-prepared documentation, defend your claim, and negotiate on your behalf with IRS agents.

Yes, if necessary, we help amend 941 forms or other tax documents to ensure compliance and maximization of your ERC claim.

The IRS has provided a resource with many frequently asked questions. This resource page can be viewed here.