IRS changes on ERC: Why don’t all Businesses Qualify for the credit? Learn more !

Your Guide to Understanding IRS Changes on the ERC

  • By Jennifer Bolton, LL.M., J.D.
    • Sep 20, 2023
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At Leyton, we understand the importance of maintaining a professional and informative brand voice to keep you updated on industry-specific matters. Today, we want to address the recent announcement made on September 14, 2023, by the IRS regarding the Employee Retention Credit (ERC)and how it can impact your claim.

What We Know

The ERC has unfortunately become a target for fraudulent activity, which has prompted the IRS to take a more diligent approach in processing claims. As a result, they have implemented a moratorium to ensure that claims are being submitted correctly. At Leyton, we fully support the IRS decision these to implement these measures, as they aim to remove fraudulent players from the market. 

What is a Common Misunderstanding Regarding ERC?

Unfortunately, many businesses are receiving inaccurate advice regarding their qualification. To make informed decisions when selecting a provider, it is crucial to grasp the prevalent misconceptions surrounding this credit and ensure you are asking the right questions. 

To assist you in navigating through the misinformation, we are addressing the prevailing misconceptions currently circulating in the world of the ERC. It’s important to be aware that:

  • Not all businesses are qualifying 
  • You likely can’t claim $26k per employee
  • ERC and Paycheck Protection Program (PPP) Loans are not the same- you may be eligible for both
  • ERC is not just for large corporations- some small to mid-size companies can qualify

Our Commitment

We pride ourselves on our work, expertise, and experience. The Leyton team is dedicated to delivering exceptional services to our clients. We have a rigorous delivery process that includes multiple rounds of quality control. Our team of experienced professionals understand the complexities of the Employee Retention Tax Credit rules and apply those rules in performing client studies.  If there is a discrepancy between the credit amount we identify and the amount refunded to our client, we actively collaborate with the client and the IRS to ensure our client receives the correct credit amount.

What to Expect

In light of the moratorium, we anticipate continued delays in processing times for claims filed from today onwards. However, claims that are already in process are still being addressed, albeit subject to additional checks. We understand that this may cause some inconvenience but rest assured, our incredible delivery team is working diligently to manage these circumstances. 

How We Can Help

At Leyton, we are here to support you throughout this process. We have the expertise to review your claim and provide guidance even if another provider initially handled it. If an audit arises, we are well-prepared to assist and navigate through the challenges.

Employee Retention Credit Representation

  • Audits Defense
  • IRS Claim Review

If you are unsure if you qualify, you can use our dedicated ERC calculator to determine your eligibility. 

Why Trust Leyton’s Tax Professionals 

We are proud to say our experts have identified $360M in benefit! But, more importantly, our tax experts are experienced in representing clients before the IRS in audit defense. Unlike other companies, Leyton has a rigorous selection process, our experts disqualified approx + 1,300 companies and has qualified approx + 2,100 in order to demonstrate that we do not just allow things to pass.

During times like these, we draw strength from our vision, mission, and values. We remain committed to delivering exceptional services and guiding our clients through any obstacles that may arise. You can take comfort in knowing that Leyton is here to support you every step of the way. 

For inquiries about your ERC claim or to better grasp the IRS decision, please reach out to our team anytime. We are ready to provide the support and expertise you need. Book a complimentary meeting with Leyton to further discuss the Employee Retention Credit. 

We’re here to provide clarity amidst the confusion by dispelling prevalent misconceptions in the realm of ERC.  

Want to learn more on the IRS decision?

Contact our ERC Experts arrow_outward arrow_outward


Jennifer Bolton, LL.M., J.D.

Head of Tax

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