At Torchlight Tax, the steps in ERC application and delivery are seven-fold.
Step 1) We do an initial free consultation and analysis to determine if your firm meets ERC Qualifications.
To do this analysis, we will require:
- Gross Receipts by Quarter for 2019, 2020, and 2021.
- Copies of Payroll Tax Forms 941 filed with the IRS for 2020 & 2021.
- Quarterly payroll broken down by employee for each quarter in 2020 & 2021.
- Did your firm receive Payroll Protection Program (PPP) Funds? If so, when, and how much? We will need your PPP Application forms.
- Were PPP loans forgiven? If so, we will need the SBA forgiveness applications and the SBA forgiveness letters.
- Did your firm provide health insurance? If so, we will need payroll summaries including this data for 2020 and 2021 by quarter and employee.
- A thorough ERC Eligibility Interview with a Torchlight Tax expert and the employer. This is the critical step of a proper ERC and may take some time.
Step 2) Next, we project your ERC refund amount and our projected fee. We explain to you EXACTLY how you qualify.
You do not have to take our word for it. What test you qualify by, and how you qualify are fully delineated.
You should not have us apply for the ERC on your behalf unless you understand how you qualify. If you and we are confident that you qualify, then:
Step 3) We file your amended 941 Tax Returns (941xs) that generate your refund checks.
Step 4) You receive your refund checks, usually 3-12 months later.
Step 5) You pay our fee if not already done.
Step 6) We amend the required 2020 and 2021 annual business and personal tax returns
Because the IRS paid back the money you deducted in wages, some of this wage expense you deducted in 2020-2021 is reduced, thus increasing your profit and taxes, making this amendment step necessary.
Step 7) We stand by you for 5 years of audit defense and respond rapidly and accurately to the IRS if you are audited.
This is Dave Horwedel of Torchlight Tax. We are happy to get all the ERC you truly qualify for or to tell you do not qualify and end off there. If you have already applied for the ERC and are concerned, you may not qualify, we are happy to review your ERC and advise you on what to do. If you are under IRS audit, we are happy to defend you.
Remember, we are a full-service tax firm composed of EAs, CPAs, tax attorneys, and support staff. In addition to handling all ERC matters, we’ll be glad to service your personal and business tax needs in the years to come.
Contact Torchlight Tax for a free consultation at 1-877-758-7797 or email at firstname.lastname@example.org-You can also read our tax blog at torchlightax.com or watch our videos on the Torchlight Tax YouTube Channel. If you have any comments or questions, we’re glad to hear from you and respond. Just click below, call, or email us. We hope you found this article helpful. Thanks for reading. We look forward to hearing from you.