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The IRS has warned businesses who qualify for the ERC tax credit that they are experiencing delays. Because of this, some applicants may not see their tax credit return for over 9 months. In addition to that, the IRS could audit your ERC tax credit if you filled out your application incorrectly. For this reason and more, ERC consultants can help you save money faster.

What Is ERC?

The Employee Retention Tax Credit (ERC) was established by the federal government to provide financial aid to businesses who qualify under one of two conditions:

1. The business experienced over a 50% decline in gross receipts in comparison to the same quarter of the previous year

2. The business paid “qualified wages” between March 12, 2020 and January 1, 2021 despite business operations being halted or restricted due to government regulations for COVID-19

If your business experienced or is experiencing financial hardship relating to the pandemic and restrictions caused by it, do not wait to apply for the ERC tax credit.

When to Hire an ERC Consultant

When hiring an ERC consultant, it’s best to do so before you apply. An ERC consultant is there to help you complete your application with the more correct information. They will be there in every step of the process to guide you.

Having an ERC consultant’s help is a reassurance that you will only be waiting on the IRS for your return. If the IRS questions your application or requests more information, that could delay you receiving your tax credit even longer, including the waiting period from the IRS delays.

Is an ERC Consultant a Financial Expert?

An ERC consultant is a trusted advisor with experience filing ERC applications for various industries. When looking for an ERC consultant to help you, you will want to make sure that you understand what type of expertise they have. For example, Five Star ERC consists of a group of business owners, tax attorneys and financial advisors. They team with experienced attorneys to get your case directly to the IRS, making them the faster than any other ERC firm.

When choosing an ERC consultant to help you apply, you want to have a team of experts compiled of different specialties to help you. Having a well-rounded team can be the difference between a smooth process for your tax credit return and having to wait with unanswered questions for months.

How Long Do I Have to File My Application?

Applications for the ERC tax credit are due by April 15, 2024 for the 2020 tax year and April 15, 2025 for the 2021 tax year. However, because of delays with the IRS reviewing applications, it’s best not to wait to file. The sooner you get your application to them, the sooner you can receive your tax credit return.

If you are ready to save your business money, contact an ERC consultant as soon as possible. They will help you complete your application, file with the IRS, and can be there to answer any questions you have every step of the way.