ERTC - Proceed with Caution

Some of the most frequent questions I have gotten over the last few tax seasons have been around the Employee Retention Tax Credit (ERTC).  This credit can be incredibly beneficial for companies that were financially impacted by the Covid-19 pandemic.  Many of my clients have received ERTC funds.  

In recent months I've noticed more and more solicitations from ERTC companies offering to help my company apply for this credit.  Oh how wonderful!  If you are a business owner - you likely received some of these solicitations as well.  You may legitimately qualify for the ERTC and you should definitely take advantage of the ERTC program if you do.  But I'd like to extend a word of caution when responding to a solicitation from an ERTC company.  It is my belief that many of them are overly aggressive and may expose your company to an audit a few years down the road - long after they have closed their doors.  As such, here are some considerations to keep in mind when using an ERTC company and applying for the ERTC.

Research the Company:

Before partnering with an ERTC company, conduct thorough research to ensure their legitimacy and credibility. Look for reviews, testimonials, and case studies from previous clients. Verify the company's background, experience, and reputation by checking online resources, such as the Better Business Bureau or industry-specific directories. It is also wise to seek recommendations from trusted sources or professional networks.

Beware of Unsubstantiated Claims:

Be cautious of ERTC companies that make unrealistic promises or guarantee specific outcomes. While ERTC professionals can help maximize your tax credit, it is impossible to guarantee specific results as eligibility and calculations depend on various factors unique to each business. Reputable ERTC companies should provide transparent information about the process, eligibility criteria, and potential benefits without making unsubstantiated claims.

Understand the Fee Structure:

Take the time to understand the fee structure and terms of engagement before signing any agreements. Reputable ERTC companies typically charge a percentage of the tax credit or offer a flat fee for their services. Ensure that the fee arrangement is reasonable and clearly outlined in the contract. 

Evaluate Communication and Responsiveness:

Effective communication is vital when partnering with an ERTC company. Pay attention to their responsiveness and willingness to answer your questions. A reliable ERTC company should be prompt in providing updates, addressing concerns, and keeping you informed throughout the process. If they are evasive, unresponsive, or fail to communicate clearly, it may be a red flag indicating potential issues down the line.

Seek Legal Advice if Needed:

If you have concerns or doubts about an ERTC company, consider seeking legal advice. An attorney specializing in tax law can review contracts, offer guidance, and ensure that your interests are protected. Legal counsel can also provide clarity on any ambiguities and help you navigate potential issues or disputes that may arise during the engagement with the ERTC company.

Engaging with an ERTC company can be a valuable decision for businesses seeking assistance with the Employee Retention Tax Credit. However, it is crucial to exercise caution and conduct thorough research before partnering with any service provider. By following these guidelines, you can minimize risks, protect your business, and make an informed decision that maximizes the benefits of the ERTC. Remember, the ultimate goal is to work with reputable professionals who prioritize your best interests and comply with applicable regulations.

Disclaimer: This blog post was created with the assistance of AI tools.  Bruner CPA Services would love to have more hours in the day to fully understand the intricacies of SEO and how best to create meaningful content that helps their website remain relevant.  But alas, the robots can do it better.  As such, AI tools were used to help create this blog post with review and edits made by Bruner CPA Services.