The Employee Retention Tax Credit (often shortened to ERC or ERTC) is a tremendous opportunity that many small business and nonprofit employers are still not aware of, but for those who have already applied, it remains a mystery how long it could take to receive their refund check(s).
That said, considering the increasing levels of economic uncertainty, a new type of commercial merchant advance has been created for organizations who would like to get access to that capital sooner (usually within 2-4 weeks rather than 6-12+ months). Interested parties can watch the following Youtube video that explains more about how the ERC loan alternative and cash advance funding process works: https://youtu.be/6ApZJjMaLXQ
According to an article on CNBC (https://www.cnbc.com/2022/03/11/-irs-plans-to-hire-10000-workers-to-tackle-massive-backlog.html), the IRS intends to hire over 10,000 employees to help take on the enormous backlog of unprocessed returns. Included in those are millions of amended 941x forms that were filed over the past year, but as more and more organizations begin to realize that they are eligible for this program, the backlog of claims continues to increase daily.
Likewise, the current turnaround time for those ERTC refunds can often vary by the size of the refund (the larger it is, the more internal checks are required, which usually means it takes longer to get approved). But that’s also assuming that all of the calculations and amendments were done correctly in the first place. If mistakes are found, that can only further delay the process and timeline.
However, based on the current economic environment, many businesses and nonprofits have expressed either the need or preference to get access to their refund as soon as possible. So with that in mind, a new type of commercial advance was created for clients to receive that capital typically within a few weeks of supplying the required documentation. For parties who would benefit and be interested in such a service, the video on the following website explains how that process works in more detail: https://www.joinallies.com/ertc
Likewise, according to a recent article in Forbes, “The IRS management anticipated that approximately 70%-80% of small and medium businesses (as well as tens of thousands of charities) were good candidates for taking the ERC. The reality is — to date the actual numbers of businesses and charities applying for the ERC — is far below that. Small and medium businesses (as well as tax-exempts/charities) are leaving billions of dollars on the table.”
Considering the legislation regarding the Employee Retention Credit has changed several times over the past two years, there is still a lot of confusion as to how to determine eligibility and correctly perform the calculations. So for the vast majority of organizations who have not yet applied for this refund yet, the website linked above also includes a comprehensive FAQ section and a free 30-second eligibility quiz to help small business owners and nonprofit directors see if they qualify for this once-in-a-lifetime economic incentive program.
And while there is still enough time left to apply before the amendment deadline passes, the biggest unknown for everyone right now is how long the IRS backlog could get as more and more organizations begin to realize they’re eligible for this. So for any interested parties who would like to see if they qualify or learn more about how the ERTC advance works, just watch the following Youtube video: https://youtu.be/6ApZJjMaLXQ
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Disclaimer: The views, suggestions, and opinions expressed here are the sole responsibility of the experts. No Florida Times Daily journalist was involved in the writing and production of this article.