Question 1

How do I apply and file for the ERC?

Accepted Answer

Start here. Innovation Refunds can help you check your eligibility, file your claim, and if eligible, collect your ERC tax refund.

Question 2

If my business did not shut down during the pandemic, am I eligible?

Accepted Answer

Your business did not have to face a total shutdown to qualify for the ERC – a partial suspension or modification of operations due to governmental orders may help you qualify.

Question 3

What can my business use the ERC refund for?

Accepted Answer

If you qualify for the ERC, there are many uses for putting your tax refund to good use – things like paying debt, hiring or retaining employees and growing your business.

Question 4

Can my business get an ERC refund if we already claimed PPP?

Accepted Answer

The short answer is yes. Of course, it depends on situational factors. You cannot claim ERC on wages paid with the funds from a forgiven PPP loan.

Question 5

Will you work with my CPA to claim the ERC?

Accepted Answer

Yes, we're happy to work with your CPA. Our independent tax attorneys are highly-qualified and trained on complex ERC tax code and will partner with your CPA to ensure your business is qualified.

Question 6

How much can my business expect to receive from the ERC?

Accepted Answer

The typical gross refund amount for Innovation Refunds’ clients is around $22,000 per employee as of March 2023. Our average gross refund amount per business is $298,654.66. The amount your business receives will depend on the accuracy of your payroll records, involvement in other relief programs, healthcare statements, owing back taxes, any deductions you may have previously taken, and other factors. These factors may also reduce the gross refund amounts noted above, which may mean that net refund is lower. Check out The ERC & Innovation Refunds by the Numbers to learn more about your business’ potential eligibility.

Question 7

Why is Innovation Refunds SOC 2 certified?

Accepted Answer

SOC 2 is a voluntary compliance standard developed by the American Institute of CPAs (AICPA) for service organizations. Our SOC 2 certification confirms that Innovation Refunds has implemented the necessary cybersecurity controls to safeguard your data.

Question 8

Why do I need a refund specialist?

Accepted Answer

There are over 70,000 pages of tax code; it’s impossible to be an expert on all of them. ERC is all we do.  It’s like the difference between your family doctor and a neurologist. By concentrating on this one program, our strategic partners understand the intricacies and nuances involved in determining your eligibility and accurately calculating your refunds.

Question 9

Can I earn more cash while awaiting my refund?

Accepted Answer

Refer your friends to us and you can earn even more money for every successfully qualified application.

Question 10

How do I check the status of my ERC refund?

Accepted Answer

To check the status of your refund, you can call the IRS directly at (877) 777-4778. You can also always reach out to your Customer Service Champion for any updates throughout your refund process.

Question 11

What should I expect after the application is submitted to the IRS?

Accepted Answer

Due to the Employee Retention Credit, the IRS is currently working through a backlog of amended Form 941 filings. This means you could experience an extended wait time before you receive your refunds.

Question 12

But I've been told my business does not qualify.

Accepted Answer

There is no upfront cost to see how much your company may recover. Our clients have claimed substantial refunds for qualified businesses—sometimes for companies that were previously told they did not qualify.

Question 13

How is the refund calculated?

Accepted Answer

Determining the proper amount of a refund is a complex accounting process. Although these are payroll tax credits, what you’ve paid in payroll tax has no bearing on your ERC calculations. The refunds are based on many factors including qualifying quarters, number of employees, hours worked, wages paid and if applicable, PPP loans, group health premiums and participation in other government programs to name a few.

Question 14

How long will it take to get my refund?

Accepted Answer

Multiple factors can affect the amount of time it takes to start receiving your business's refund and checks are issued for each qualifying quarter. Typically, our clients receive their first check in 4-7 months following the submission of a claim to the IRS, with subsequent checks coming after that.

Question 15

What is your fee and when do we pay it?

Accepted Answer

There are no up-front fees or obligations to receive your refund analysis. Once engaged in recovering your business’ refunds, our fee is 25%, with no hidden costs. You will never come out of pocket to pay our fee. We’re paid only as your business receives its refund check. Our fee includes the preparation of your claims by a professional CPA or tax attorney who is experienced in qualifying, substantiating, calculating, and claiming ERC refunds.

Question 16

My business was profitable or deemed essential, can I still qualify?

Accepted Answer

Both essential and non-essential businesses alike could qualify, and a decline in revenue may not be required. Many of our clients even had increases in sales, but still experienced disruptions or were negatively impacted.

Question 17

Do I have to pay this back?

Accepted Answer

Unlike PPP, this is not a loan. It's money for your business, and it's up to you how you use it.

Question 18

How do I know if my business qualifies?

Accepted Answer

The IRS expects 70-80% of SMBs are good candidates for taking the ERC. If your business experienced disruptions to commerce, travel, or group meetings due to a government order, it might qualify! This includes supply chain disruptions, price increases, reduced hours, reduction in goods or services offered, were unable to travel, or attend conventions. Talk to one of our Refund Specialists to find out more.

Question 19

What is the Employee Retention Credit (ERC)?

Accepted Answer

ERC is a refundable payroll tax credit. Born out of the same CARES Act as PPP, its aim is to provide economic relief for small and medium businesses who retained employees during the COVID-19 pandemic. Initially, eligible employers could only take either PPP, or ERC. In 2021, as part of the Consolidated Appropriations Act, Congress amended this provision, allowing businesses to apply for both.

Question 20

How is ERC different from the Paycheck Protection Program (PPP)?

Accepted Answer

PPP was a forgivable loan. ERC returns the payroll taxes that your business has already paid. Once your business receives the ERC funds from the US Treasury, it does not have to pay back the credit.

Question 21

Why haven't I heard about ERC before?

Accepted Answer

PPP was heavily marketed by the SBA, while ERC is claimed directly through the US Treasury. Along with our bank partners, it’s our mission to educate you and obtain for your business the payroll tax refund that it’s entitled to.

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