How we got an essential Auto Body business in Fairfax County Virginia 1.7 million dollars in tax refunds

Brief

Mike and Javier recently received life changing news. The government is sending them $1.7 million dollars in tax refunds.

It’s all part of the employee retention tax credit program.

Here’s the thing. Mike and Javier own an essential business. In fact, they own 7 auto body repair businesses, and they were able to continue to operate through the pandemic.

At first glance, they thought they didn’t qualify.

  • They were essential.
  • They received the PPP and PPP2.
  • They had too many employees.
  • Their sales weren’t down enough to meet the revenue reduction requirements.

What Did We Find?

First, we gathered all their documentation. That meant sales figures by location, payroll tax returns, tax ID numbers, and ownership percentages.

We noticed immediately that even though the two were partners, they weren’t equal partners at every location. Ownership % varied among the locations.

Second, we noticed that they file separate tax returns by location.

Third, we noticed that some locations had greater revenue reductions than other locations.

We Immediately saw the opportunity for Mike and Javier’s businesses.

How Did We Do It?

Having helped file for millions of dollars of tax credits we’ve honed a simple repeatable process we use every time.

There are 3 steps.

1. We collected all the documentation upfront. Revenues, payroll, tax ID numbers, ownership percentages, PPP amounts and dates. (This takes about 30 minutes for most clients)
2. We analyzed the data. We spent weeks pouring over the data, ensuring all possible scenarios were uncovered. We’ve developed robust spreadsheets that allow us to quickly determine the amount of the tax credits and all qualifying (and disqualifying) events.
3. We filed the returns. In Mike and Javier’s case, we included a legal review of the ownership structure by our attorneys for additional assurances.

The Result

Mike and Javier now have $1.7 million to reinvest into their business.

After a year of uncertainty, they can now pay bonuses, increase salaries, and hire more employees. And, after an absolutely brutal year, they can each take a collective sigh of relief and take a much deserved break for a couple of days.

How we got $180,000 for a Coffee Shop in Orange County California

Brief

Ryan and Tara opened their doors days before the pandemic.

Ryan and Tara own a coffee shop by me. They have a great cup of coffee and killer breakfast burritos.

Throughout the pandemic they’ve done well with their awesome neighborhood vibe.

While they survived, it hasn’t been easy.

While everyone around them got PPP, PPP2, and restaurant revitalization funds, they were left out in the cold.

See, they started their business in early 2020.

Literally opened their doors days before the pandemic.

And while it seems every business in the US was able to take advantage of massive amounts of government aid, through no fault of their own, they were not.

So they did the only thing they could do – HUSTLE.

What Did We Find?

We evaluated Ryan and Tara’s situation.

In late 2020 congress passed legislation substantially changing the rules for the employee retention tax credit program.

And knowing what Ryan and Tara went through over the past year, I knew me and my team could help.

We followed our three-step process. We gathered all the state covid mandates that applied to their business.

We found that even though their sales continued to grow, the state had applied restrictive mandates, forcing them to significantly modify their operations.

  • No indoor dining.
  • To go orders only.
  • Limited capacity.
  • Enhanced cleaning requirements.

The list seemed to go on forever.

How Did We Do It?

After meticulously researching the state and local regulations...

We found that Ryan and Tara’s business qualified for tax credits for ALL of 2020, and the first two quarters of 2021.

They recently received their first of multiple refund checks for nearly $80,000.

Over the past year there were times they weren’t sure if their business was going to make it.

Now they can hire more staff, invest in additional equipment, and keep making the killer breakfast burritos they’re famous for.

The Result

Ryan and Tara qualified for a $180,000 refund.

After a year of uncertainty, they can now pay bonuses, increase salaries, and hire more employees. And, after an absolutely brutal year, they can each take a collective sigh of relief and take a much deserved break for a couple of days.

How we got a Pharmacy in Los Angeles $500,000 in tax credits

Brief

Fadi thought he may qualify but didn't know how to go about it.

Fadi, an owner of a pharmacy, was recently referred to us to evaluate whether or not he qualified for the employee retention tax credits.

As the owner of a pharmacy, his business is essential.

And in today’s covid world, more critical than ever.

But he thought he might qualify. But wasn’t sure how.

And definitely didn’t want to do it alone.

What Did We Find?

Fadi’s situation was unique.

He didn’t have a revenue reduction AND his business was clearly essential.

He explained all the extra regulations he was forced to comply with to stay open.

There were new covid regulations from the State and County he operated in.

The state’s department of health imposed special cleaning and sanitization requirements on pharmacies due to the high likelihood that covid could be spread in such locations.

While his doors could remain open, he had to severely limit the number of patients allowed inside his facility at any given time to minimize the potential spread of the virus.

And he was required to implement curbside pickup and drop off whenever possible. Which meant he had to have a full time staff member just to run prescriptions back and forth to customers.

How Did We Do It?

Having helped file for millions of dollars of tax credits we’ve honed a simple repeatable process we use every time.

Using our 3 steps: 
1. We collected all the documentation upfront. Revenues, payroll, tax ID numbers, ownership percentages, PPP amounts and dates. Even though he could stay open, nearly everything about the way he conducted business, and the way he interacted with his customers had to change in order to comply with the state mandates
2. We analyzed the data. When we added up all the time he spent managing the new guidelines it was clear – his business was more than nominally impacted. .
3. We filed the returns and finalized the necessary paperwork to get Fadi $500,000.

The Result

We recently wrapped up filing for his tax refunds. He is waiting for nearly $500,000 in refunds from the government.

After a grueling year of constantly changing regulations, Fadi and his team were worn out. Just documenting all the changes he was forced to comply with was a tiring task.

With the nearly $500,000 return, the money will be used to offset his investments in new processes, safety protocols, and additional safety equipment. He hopes to hire additional staff so he can better and safely serve his high-risk customers in the covid world.