NOTE: Businesses that file an income tax return deducting qualified wages before filing an employment tax return claiming a tax credit should file an amended income tax return to correct any overstated wage deduction. You can read more on this IRS page. Services being offered do not require a state license.

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Why Review Your ERC Claim Now?

ERC Filing Review: 
What We Provide

Our expert team of tax credit analysts will conduct a complete examination of your ERC claim, assessing all critical areas for ERC compliance, including:

Want peace of mind that you won’t have to withdraw your claim or repay funds??

ERC Filing Review is for any business owner uncertain about the validity of their Employee Retention Credit claim. Our review will reveal any potential red flags in your ERC claim and check for specific documentation needed to demonstrate your ERC eligibility in case of an IRS audit.

Do you have substantial evidence of your business’ ERC eligibility?

Businesses may need the following documentation to demonstrate ERC compliance:

• A detailed calculation of the ERC credit for each employee
• A Covid Order timeline and summary of relevant orders
• Documentation to substantiate a 10% “nominal disruption”
• Detailed employee count analysis

The Rise of ERC Scams

Dubious tax credit pop-ups, recently dubbed “ERC Mills,” advise businesses to claim Employee Retention Credits they don’t actually qualify for. These companies do not conduct an appropriate analysis of the business’ qualifications.

Increased Audit Risk

The IRS has begun targeting abusive ERC claims by sending IDRs (Information Document Requests) to businesses with unsubstantiated claims. Many companies have already had their ERC audited, and a new IRS ERC mill warning cautions employers to take extra care when vetting companies that promote the credit.

Businesses that filed improperly through a questionable tax credit provider are at risk of penalties and interest. As ERC audits are on the rise, business owners should have their filings double-checked by an experienced and trusted firm while there is still time to correct any improperly claimed credits.

IRS Urges Deeper Review

The IRS has escalated its response to this issue by immediately suspending the processing of any new ERC claims until the end of the year, emphasizing the need for businesses to exercise caution and ensure the legitimacy of their claims to avoid penalties and interest. Business owners are strongly urged to have their ERC filings reviewed by reputable and experienced firms to rectify any improperly claimed credits during this temporary halt in processing.

• A detailed calculation of the ERC credit for each employee
• A Covid Order timeline and summary of relevant orders
• Documentation to substantiate a 10% “nominal disruption”
• Detailed employee count analysis
  

Omega Accounting Solutions is not just another tax credit expert — we equip small business owners with big-business resources, empowering strategic decision-making through business intelligence, fractional accounting, and analytics. We fuel your growth with honest and insightful reports that help refine your business plan, boost efficiency, and maximize your tax credits. Our experienced team has secured thousands of ERC credits for a wide range of businesses nationwide. Founded in 2007, Omega is committed to helping small and medium-sized businesses thrive.

About Omega Accounting Solutions

How Omega Differs

Many companies offer advice on tax incentives. At Omega, we don't just engage with customers, we build lasting relationships. Our team can continue to work with you year after year to recoup the maximum tax credits for your business. As an ongoing partner, we continually help your team ensure compliance with state and federal requirements when claiming government tax incentives.

ERC Review FAQ:

What is the statute of limitations for ERC audits?

The IRS recently extended the statute of limitations from three years to five years for all tax amendments regarding ERC. This extension of the ERC audit period allows the IRS another two years to conduct ERC audits on businesses that, among others, may lack substantial documented evidence of their eligibility.

Does claiming the ERC increase my audit risk?

Claiming the Employee Retention Credit does not directly increase your business’ risk of being audited. As long as your ERC claim is calculated correctly and includes substantial evidence of your business’s eligibility, the IRS should have no reason to believe an audit is necessary. Omega can identify any potential holes in your ERC claim and ensure your calculations are correct.

What is the penalty for ERC fraud?

Miscalculated or improperly claimed ERC credits can be met with failure to deposit penalties and interest due on the late return of 20% to 40% of the underpaid tax, and up to 75% if the fraud was committed knowingly. Business owners are always responsible for the information reported on their tax returns — even if they used an outside tax preparer or tax credit specialist to claim ERC.

As of September 14th, 2023 the IRS has announced an immediate stop to processing any new ERC claims until the end of the year after experiencing a rise in “ERC mill” fraudulent claims. 

1. Has your ERC partner demonstrated a thorough understanding of IRS ERC rules and eligibility requirements?

2. Does your ERC partner have a proven track record of successfully processing ERC refunds, backed by case studies or success stories from satisfied clients?

3. Is your ERC partner transparent about their fees, charging reasonable upfront costs without requiring excessive contingency fees?

4. Does your ERC partner have documented processes and a quality control system in place to ensure accuracy and efficiency in processing ERC claims?

5. Has your ERC partner regularly updated their qualification guidelines to stay current with changing IRS regulations, showing a commitment to providing accurate and up-to-date assistance to clients?

How to Identify if You've Chosen a Reputable ERC Partner: 5 Crucial Questions