Accounting firm owner from Seattle... Definitely makes sense (and how we have understood the spirit of the law was intended) But IRS has had so many moving targets with little clarrification causing confusion and the opportunity for fraudulent companies to jump in and take advantage. And IRS is not going to make waves with millions of businesses to check this- not enough man power. It was handled poorly for such a beneficial program.
Larry great video. I only had a few clients that qualified and it was only for limited quarters, i spent more time fielding calls from clients about a "new" credit, everytime the marketers called it something else.
As soon as I realized that my difference in quarterly revenue missed the percentage required to qualify I pulled the plug on applying for the ERC. My intuition told me something wasn’t right about the other option to qualify - too easy on the surface. Seemed like a way for the IRS to come back on you with an audit. At least you can prove your revenue difference with hard numbers, invoices, deposits etc. I believe a lot of the requirements were by design in order to tempt and mislead small business owners in the first place.
My boss applied for ERC on February last year. His company was struggling, and some weeks did not have enough money to pay us. ERC marketing was sounding every day everywhere. He got the check on June and did not spend it because his CPA did found out and talked his that it was a scam. Two weeks later the IRS send him a letter to ask for the money back. He still have the checks and the question is what's the procedure to give back the ERC checks to the IRS without problem?
There was a law passed in December 27, 2020 that made it possible for those who got the PPP loans, whether they were paid in full or forgive, to also qualify for ERC, 2 quarters of 2020, and 3 quarters of 2021!!
Larry what do you think about the irs coming down on income tax return preparers, as i have read the irs is taking the position doing the correct adjustments on their business return is making you a party to the ERC Fraud. I am turning away any new clients that got ERC that used one of these mills.
