In many ways, there have been a torrent of noteworthy ERC “events” in the last three months since we checked in. In other ways, very little has transpired at all.
Action vs. Inaction
We’ve seen an explosion of television, radio, and email/text marketing about this “little-known payroll tax credit” (sarcasm intended…). We’ve seen the IRS release a bulletin to warn employers about third-party “promoters” pushing improper positions. We’ve caught wind that the IRS has finally trained a small army of agents (around 300) to properly review “larger” credits, which may give hope to faster processing on a large pool of delayed quarters (typically, greater than $200,000). We saw a recent Wall Street Journal article, which I had the privilege of being quoted in, covering various facets of the ERC, including the good, bad, and the ugly. And finally, we submitted another $160 million of ERC refund claims to the IRS in the last quarter and saw an additional $174.5 million successfully processed, bringing our lifetime totals to $575 million submitted and $254 million processed.
On the “not so active” side of the ERC, we continue to see many delays for our clients waiting for credits that are greater than $200,000 per quarter, with very little movement on any of these claims filed during or after November of 2021. With a shrinking statute of limitations on the ERC, increased training efforts, deep pockets, and new leadership, EZ-ERC is optimistic about the prospect of the IRS accelerating the review and processing of these larger claims. We’ll continue to actively monitor our client’s accounts using our state-of-the-art process and technology behind our “IRS Refund Tracking” team. Rest assured your account is set up for “daily tracking” and that we are regularly checking in with the IRS and exhausting all resources to secure these credits.
With these swirling currents in the backdrop, there’s plenty to feel good about. The IRS continues to accelerate the processing of “small credits”, EZ-ERC continues to augment its internal team dedicated to IRS tracking and troubleshooting (2 JDs and 1 CPA added in last two months), and our clients continue to remain calm and resolute with their ERC claim, knowing they are in the hands of the industry leader for complex ERC fact patterns. While many of you have received early holiday “gifts” from the IRS, we’re confident many more gifts will be delivered during or shortly after this holiday season!
Shameless Thought Leadership Plug…
If you have not done so already, we’d encourage you to review some of the thought leadership pieces mentioned throughout this update. EZ-ERC prides itself in having some of the nation’s most respected thought leaders on this subject in-house, as well as the strong relationships we have forged across other tax, accounting, and law firms.
What’s Up Next?
As EZ-ERC continues to grow its team of over 50 talented professionals, we are quietly building a suite of complementary service offerings to bring into Phase II of the company…life beyond the ERC. In addition to continuously adding great talent internally, we continue to grow and strengthen the relationships with external law firms, tax insurance brokers, alternative capital lenders, and general business services firms. As our focus pivots from the ERC to other credits, incentives, income tax, and general business services, we look forward to finding new and innovative ways to create value for our existing client base, you, and many other businesses around the world. We look forward to sharing more details in our next update!!!
We thank you for putting your trust in EZ-ERC. You are in the best possible hands.