How we got an essential business 1.7 million
dollars in tax refunds

01. Brief

INDUSTRY

Auto Body
LOCATION
Fairfax County Virginia

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.

02. 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.

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

03. 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.

01 We collect all the documentation upfront. Revenues, payroll, tax ID numbers, ownership percentages, PPP amounts and dates. (this takes about 30 minutes for most clients)
02 We analyze 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.
03We file the returns. In Mike and Javier’s case, we included a legal review of the ownership structure by our attorneys for additional assurances.
04. The result

$1.7 million to reinvest into
their business

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.