Category 1
What does ERC stand for?
Employee Retention Credit
What is ERC?
A refundable tax credit that was created during the pandemic (with the CARES Act) to help encourage business to keep employees on the payroll and operations running to keep the economy stable.
What does IRS stand for?
Internal Revenue Service
What does GR stand for?
Gross Receipts
What is a TIN or EIN?
The Tax ID Number or Employer Identification Number assigned to a business as their unique identifier with the US government for reporting.
What is the form number that businesses file for their tax returns?
Form 941.
What are the qualifying tests for ERC eligibility?
1. Shutdown (Full or Partial)
2. Decline in Gross Revenue
In what interval are business tax returns filed?
Quarterly, specifically calendar quarterly.
What is the name/number of the amended tax return we file for our clients.
Form 941X.
What is a DBA?
It is the local trade name or informal name that a business is known by. The informal name they publicly use instead of the legal entity name.
What is considered a government order?
Orders, proclamations, state of emergency declarations, or decrees from the Federal government or any State or local government or health department.
What is the additional qualifying test for ERC?
Supply Chain Disruption
What information is on the business tax return? List 3 items.
- Which Calendar Quarter
- Business EIN
- Business Entity Name
- Business DBA
- Business Address
- Wage information and calculations
How many employees can a business have in 2019 or 2020 for ERC to not fall within the exception rules?
100 employees maximum before they're considered a large employer and can't count the wages unless met by exception.
Do we go by businesses' legal entity name or their DBA name on billboards?
We go by their legal entity name for contracts, tax returns, and all other documents.
How many EINs does a business have?
What are the 5 main steps to our process of processing the claims for our clients?
▪Step 1: Evaluate the business and if they potentially qualify for the credit
▪Step 2: Gather the information needed to complete the claim
▪Step 3: Calculate the claim
▪Step 4: File the claim
▪Step 5: The IRS issues the refund
Which address goes on the amended tax returns we file for our clients, the physical address or the legal address?
Typically the legal address, unless the client specifies that they want their returns and refunds sent to a different address.
What quarters do businesses potentially qualify for?
Businesses open before the pandemic - March 12th, 2020 – September 30th, 2021
Recovery Startup Businesses - Q1 2020 – Q3 2021
What is a "parent company"?
A "parent company" is a business with several sub entities extended. Think of it as an "umbrella company".