I got an interesting call from an attorney today. For many, that sentence probably conjures up a myriad of different stressful scenarios, but for me, it was actually a very friendly chat. He called because he had noticed I filed for the employee retention tax credit (ERTC) for one of his clients that he didn’t think qualified. He was worried about the repercussions of filing if they indeed did not qualify.
The PPP and the ERTC
In the case of this specific client, he had read that anybody who took advantage of the PPP was not eligible for the ERTC. Since his client had filed for the PPP he could only imagine that also filing for the ERTC was a mistake and he needed to protect his customer.
Seems like a very logical concern right? After all, he went to the IRS website to get his information. If their website says you don’t qualify then it has to be true right?
For a full discussion of this topic feel free to check out this article:
He had made the classic mistake that many people make. They find one thing that says they don’t qualify and they stop reading. I told him that he should go back to their website and look closely. Right there on their own website, it says that the information contained is not up-to-date!
He didn’t believe me and he immediately got online to verify. Much to his surprise, sure enough, they were openly advertising the fact that the information was dated and inaccurate. With that out of the way, we started to dive into what the truth of the matter was.
American Rescue Act
On December 27 of last year, Congress passed the American Rescue Act to increase the aid available to business owners. Among other things, this act made many changes to the rules and qualifications in regards to the ERTC. The problem is that many people don’t actually dig in any deeper because they have no reason to.
As of December 27 though, businesses actually are allowed to take advantage of both! The caveat is that they can’t use both at the same time or overlap on wages earned. This entire interaction is a great example of why it is always good to get a second opinion! The attorney in this story didn’t do anything wrong, he went right to the source for his information! He just didn’t realize it was out of date and there were hundreds of pages of qualifications and exceptions. Not to mention that Congress had passed the American Rescue Act and not updated the IRS website to reflect those changes.
Don’t get left out!
Nobody wants to find themselves on the outside looking in. Don’t be left on the sidelines when it comes to these amazing opportunities! Take the time to get multiple opinions and don’t trust the first thing you read.
This is an area we are definitely subject matter experts on and we have read through every page out there in relation to qualifiers and exceptions. We would love to help you find out if you qualify and how much you could qualify for!
For a layman’s guide to the employee retention tax credit check out our roadmap below:
Have questions that aren’t answered in the article or video? Book time with Brad today by clicking here!