Starting a new job is exciting! Especially if you are going into business for yourself. You are going to have full control of your schedule, what jobs you take, how you complete your projects, and more. However, with this freedom comes more responsibilities.
The Employee Retention Tax Credit, also known as the ERC or ERTC, is a legitimate tax credit available to small businesses who retained their employees during the pandemic era. However, since the announcement of the tax credit, many “companies” have come about with aggressive marketing techniques targeted towards small businesses that may not qualify.
In response, the IRS has had to issue a moratorium on the processing of new claims, deeming the aggressive marketing an “unacceptable risk” to businesses and the tax system. Currently, they plan to resume processing ERC requests in January of 2024. The pause on processing new ERC claims was done in an effort to allow the IRS to create and implement more safeguards to prevent abuse of the ERC program, protect businesses from predatory tactics, and pursue fraud.
When facing a tax debt, it’s important to explore all available options to resolve the issue. The first step: Don’t panic! Looking into different resolution options to determine which one would be the best fit for your specific situation is essential. Depending on the situation, you might be able to qualify for one of the following tax resolution options.
During a mandatory review of an IRS storage facility in Ogden, Utah, the IRS personnel were unable to locate as many as 168 microfilm backup cartridges, which are used to store old tax records. Each microfilm cartridge holds up to 2,000 photographic images, leaving thousands of tax records unaccounted for. Not to mention, the other microfilm cartridges containing millions of individual and business tax records for fiscal year 2010 that have also been reported missing. Those of which were supposed to be shipped from Fresno, California to Kansas City, Missouri when the Fresno facility shut down in 2021.
If you were to do a quick internet search on the Employee Retention Credit you might find yourself with more questions than answers. Trying to navigate all the changes, eligibility criteria, and how this credit affects small business can feel overwhelming! So, let’s talk about everything you need to know about the Employee Retention Credit (ERC), also known as the Employee Retention Tax Credit (ERTC).