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December 13, 2023

Seasonal Smarts: Leverage the Holidays for Tax and Finance Planning

Seasonal Smarts: Leverage the Holidays for Tax and Finance Planning The holiday season, with its spirit of giving and reflection, is the perfect backdrop for some savvy financial planning. As the year winds down, taking a moment away from the festivities to focus on your taxes and finances can lead to substantial savings and a… Continue reading Seasonal Smarts: Leverage the Holidays for Tax and Finance Planning

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December 6, 2023

Year-End Strategies: Setting Up Your Business for Success in 2024

Year-End Strategies: Setting Up Your Business for Success in 2024 As the final quarter of the year unfolds, businesses are presented with a crucial opportunity to lay the groundwork for success in 2024. Q4 is not just about closing out the year; it’s about strategic positioning for the future. Let’s delve into essential activities that… Continue reading Year-End Strategies: Setting Up Your Business for Success in 2024

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November 22, 2023

How Philanthropy Results in Smart Tax Savings

How Philanthropy Results in Smart Tax Savings As the holiday season approaches, remember it is also the season of giving! Did you know your giving spirit can lead to smart tax savings? Here’s how: Charitable Deductions: Donate to qualified nonprofits and lower your taxable income, reducing your tax bill while supporting your passion. Charitable donations… Continue reading How Philanthropy Results in Smart Tax Savings

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November 15, 2023

Why Restaurants and Retail Shops Should Still Apply for the Employee Retention Credit (ERC)

Why Restaurants and Retail Shops Should Still Apply for the Employee Retention Credit (ERC) In the aftermath of unprecedented challenges, restaurants and retail shops are looking for ways to stabilize and grow. One critical lifeline not to be overlooked is the Employee Retention Credit (ERC). Here’s why your business should consider applying if you haven’t… Continue reading Why Restaurants and Retail Shops Should Still Apply for the Employee Retention Credit (ERC)

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October 25, 2023

IRS Announces Withdrawal Process for Erroneous ERC Claims

Last week the IRS announced a new option for taxpayers to withdraw pending Employee Retention Credit (ERC) claims. This option is limited to businesses with pending ERC filings with the IRS, or for any refund check that has not been cashed yet. While this new process will likely not apply to any of our clients… Continue reading IRS Announces Withdrawal Process for Erroneous ERC Claims

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July 26, 2023

The Interplay Between R&D Tax Credits and Patent Strategy: A Hidden Synergy

In the quest for financial efficiency, businesses often overlook the synergy between different areas of operation. One such overlooked synergy lies in the interplay between R&D tax credits and patent strategy. This hidden synergy can greatly enhance the return on your innovation investments. Let’s delve into this intricate dance. Understanding the Dancers Before exploring the… Continue reading The Interplay Between R&D Tax Credits and Patent Strategy: A Hidden Synergy

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July 19, 2023

Staying Ahead of the Curve: Planning your Tax Strategy for the Next Fiscal Year

Tax season may seem like a recurring event that pops up once a year, but the reality is that tax planning should be an ongoing process. Staying ahead of the curve by planning your tax strategy for the next fiscal year can provide significant benefits, ensuring you’re prepared and proactive rather than reactive when tax… Continue reading Staying Ahead of the Curve: Planning your Tax Strategy for the Next Fiscal Year

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July 12, 2023

Understanding the Impact of Tax Strategies on your Bottom Line

The key to financial success lies not just in how much money your business makes, but also in how effectively it manages expenses, including taxes. An effective tax strategy can significantly impact your bottom line, leading to improved profitability and financial stability. The Power of Tax Strategies At first glance, taxes may seem like a… Continue reading Understanding the Impact of Tax Strategies on your Bottom Line

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June 28, 2023

Five Common Misconceptions about the Employee Retention Credit

In the whirlwind of information surrounding pandemic-era relief measures, the Employee Retention Credit (ERC) has emerged as a beacon of assistance for businesses navigating these challenging times. However, misconceptions about the ERC can cause businesses to overlook or underestimate this valuable tax credit. Let’s debunk five common misconceptions about the ERC. 1. Misconception: ERC is… Continue reading Five Common Misconceptions about the Employee Retention Credit

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June 21, 2023

The Art of Balancing: Combining R&D Tax Credits and Direct Funding for Optimal Gain

Funding innovation and research can be a complex puzzle, especially when you’re trying to maximize financial efficiency. Thankfully, the solution often lies in a balancing act: combining R&D tax credits with direct funding sources. This strategy can create a powerful synergy that fuels growth while optimizing financial gain. Understanding the Pieces Before we dive into… Continue reading The Art of Balancing: Combining R&D Tax Credits and Direct Funding for Optimal Gain

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Frequently Asked Questions

FAQs

Is the IRS cancelling the ERC program early?
The IRS released updated guidance on the Employee Retention Credit program on September 14, 2023. The news release below explains that the IRS has placed an immediate moratorium through the end of the year on the processing of new ERC claims in effort to curb fraudulent applications by bad actors. While a moratorium may sound alarming, this intentional pause is a common practice used by the IRS. This is a developing situation, and we will continue to provide updates as new information is released. This what we know so far:
  • This news confirms that the ERC is still a valid and valuable tax incentive for qualified businesses – this is not a cancellation of the program.
  • The IRS moratorium will delay taxpayers from receiving their ERC funds, but it does not prevent taxpayers from continuing to file for the credit.
  • The IRS may ask for more information to process future ERC claims, which we are prepared to provide as it is already part of our normal substantiation process.
  • We will only release a credit for your business if we are confident you meet the IRS requirements. The positions we take are in line with the updated guidance that the IRS has provided.
  • A large portion of the businesses we evaluate for ERC do not meet IRS eligibility requirements. If we filed a credit on your behalf, it is because we are confident you qualify. You should not be concerned about the credits you have claimed. The positions we have taken continue to be in line with the updated guidance that the IRS has provided.
  • The IRS is taking steps to help taxpayers remediate any inappropriately claimed credits in good faith. The IRS encourages taxpayers to evaluate their eligibility for the credit. If you know anyone concerned with a credit they claimed individually or through a company other than ERC Pros, we can offer assistance through our ERC Substantiation Services.
The IRS has not yet provided total clarity on how things will unfold in the coming months, but our team of attorneys and CPAs is closely monitoring the situation. More information.
Who can withdraw an ERC claim?
Employers for whom all of the following is true:
  • The claim was made on an amended employment return (Forms 941-X, 943-X, 944-X, CT-1X);
  • The amended employment return only added the claim for the ERC – no other adjustments were made;
  • The employer seeks to withdraw the entire amount of the ERC claim; and
  • The IRS had not paid the claim, or the check for the refund has not been cashed or deposited.
Who cannot withdraw an ERC claim?
Employers who have already cashed their refund checks or who claimed the ERC on their original employment tax return.
Why did the IRS create this withdrawal option?
The IRS created the withdrawal option to help small business owners and others who were pressured or misled by ERC marketers or promoters into filing ineligible claims.
Why is this so important?

Claims that are withdrawn will be treated as if they were never filed. The IRS will not impose penalties or interest, which can save you a lot of money.

How does an employer withdraw an ERC claim?
A: Review the instructions carefully at: Withdraw an Employee Retention Credit (ERC) claim | Internal Revenue Service (irs.gov) Section A: You haven’t received a refund and haven’t been notified your claim is under audit.
  • Make a copy of the adjusted return with the claim you wish to withdraw.
  • In the left margin of the first page, write “Withdrawn.”
  • In the right margin of the first page:
  • Have an authorized person sign and date it.
  • Write their name and title next to their signature.
  • Fax the signed copy of your return using your computer or mobile device to the IRS’s ERC claim withdrawal fax line at 855-738-7609. This is your withdrawal request. Keep your copy with your tax records. **If you can’t fax your withdrawal request, you can mail it to the address in the instructions for the adjusted return that applies to your business or organization. Before doing so you should make a copy of the signed and dated first page to keep for your records. It will take longer for the IRS to receive your request if you mail it. Mail your package via certified mail to track and confirm delivery.
Section B: You haven’t received a refund and you’ve been notified your claim is under audit. If you’ve been notified that the IRS is auditing the adjusted employment tax return that includes your ERC claim, prepare your withdrawal request using the steps in Section A, but don’t submit to the withdrawal fax line or mail it using the address below. Instead:
  • If you’ve been assigned an examiner, communicate with your examiner about how to submit your withdrawal request directly to them.
  • If you haven’t been assigned an examiner, respond to your audit notice with your withdrawal request, using the instructions in the notice for responding.
Section C: You received a refund check but haven’t cashed or deposited it.
  • Prepare the claim withdrawal request using the steps in Section A, but don’t fax the request.
  • Write “Void” in the endorsement section on the back of the refund check.
  • Include a note that says, “ERC Withdrawal” and briefly explain the reason for returning the refund check.
  • Make copies for your tax records of the front and back of the voided check, the explanation notes and the signed and dated withdrawal request page.
  • Don’t staple, bend, or paper clip the voided check; include it with your claim withdrawal request and mail it to the IRS at:

Cincinnati Refund Inquiry Unit

PO Box 145500

Mail Stop 536G

Cincinnati, OH 45250

**Mail your package via certified mail to track and confirm delivery.

What happens after submitting the withdraw request?
The IRS will send you a letter telling you whether your withdrawal request was accepted or rejected. Your approved request is not effective until you have your acceptance letter from the IRS. If your withdrawal is accepted, you may need to amend your income tax returns if you already included the claim for the ERC in the filing. If you need help, seek out a trusted tax professional.

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