Tips On Properly Claiming the ERC in June 2023

By Karl Sussan, LLM, esq JD Law
- 04 May, 2023
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Following the recent IRS warnings concerning the Employee Retention Credit, many people wonder if they should claim the ERC. The answer is yes! – Recently, the Internal Revenue Service (IRS) issued a warning regarding businesses committing ERC tax credit schemes and the risk to those who claim improperly. Hear from Leyton’s Tax Professionals on who have had 0 IRS Rejected ERC tax credit claims.

What is the Employee Retention Tax Credit?

COVID-19 economic relief legislation passed the Employee Retention Credit to encourage businesses to keep their employees employed. It is a fully refundable tax credit that is first used to offset a company’s payroll tax liability.

IRS DEADLINES:

Deadline to Claim 2020 ERC is April 15, 2024

Deadline to Claim 2021 ERC is April 15, 2025

How long does it take to get your refund check from the IRS?

According to the IRS, it takes about 20 weeks from when the IRS receives your claim. The processing of some claims may be completed earlier, whereas large claims may take up to 4-8 weeks to process.

What are ERC Pop-Up Companies?

ERC pop-ups are third-party vendors who started in the last couple of years when the ERC came up. They have been caught by the IRS offering: fraudulent ERC claims, overpromising larger credit amounts, ignoring ERC guidance and rules, and asking for upfront fees.

Amounts to be properly claimed according to the IRS from the ERC Tax Credit are:

Up to $5,000 per employee for all eligible 2020 quarters
Up to $7,000 credit per employee for all eligible 2021 quarters
Maximum of $21,000 in 2021

Leyton shares the concern of the IRS when it comes to seeing a multitude of ERC firms emerging who mislead people to believe they are eligible. Use our calculator to discover your potential benefit in less than 1 minute.

As a company interested in pursuing the Employee Retention Credit, you should be asking these questions to your provider:

Have you successfully defended a client in front of the IRS?
Do you have Tax attorneys on staff who are knowledgeable in understanding the rules and requirements of ERC Tax Credit?
Do you have a Quality Control process?
Do you have an established track record before Employee Retention Credit?
Will the business still be here in 3 years’ time to help in the event of an audit?

Why Trust Leyton’s Tax Professionals

We are proud to say we have 0 IRS Rejected ERC tax credit claims or audits. But, more importantly, our tax experts are experienced in representing clients before the IRS in audit defense. Leyton has assisted and guided 3,000 companies and counting looking to claim the Employee Retention Credit amounting in $300 Million. Many of those companies successfully claimed the ERTC and others, we determined did not qualify. If you do not qualify after review from our Tax and Technical Experts, there is no charge to you!

Leyton USA not only offers services to claim the Employee Retention Credit, we also have a line of other services including: R&D Tax Credit, Payroll Tax Credit, State and Local Tax, and Energy Efficiency Incentives

Leyton is an international consulting firm that helps businesses leverage financial incentives to accelerate their growth and achieve long-lasting performance.

Many of these businesses have come up to assist companies in claiming this new government tax credit, but many do not have the extensive background and expertise that larger financial service companies may have. However, our team of tax experts understand the rules, regulations and qualifications of the Employee Retention Credit. All documentation goes through 2 rounds of Quality Control and we’re here to support you in the event of an audit.

With over 25 years of global experience, our team of tax experts are here to support you every step of the way. For more details on claiming the ERC, check out our article: Filing for the Employee Retention Credit

ERC Client Highlight

One of our clients, Qwik Response, had their credit challenged by the IRS and we were able to authenticate it to ensure they received their full benefit.

Our client was told that they were not receiving their refund and they didn’t qualify. With the expert guidance of Leyton’s tax attorney, Karl Sussan, they were able to properly navigate claiming the ERC Tax Credit with the IRS.

The IRS did not process our application on time, and we had to call them to follow up with them. Leyton offered to help us find out why this happened. The Leyton representative was responsive and willing to help get to the bottom of things with the IRS.