Understanding ERC IRS Warnings: Why American Financial and Tax’s AI Software is a Game-Changer for Business Owners
The Employee Retention Credit (ERC) is a provision of the CARES Act designed to help businesses keep their employees during COVID-19. It allows businesses to claim up to $5,000 in 2020 and $21,000 in 2021 per employee in tax credits through their payroll taxes. However, the ERC can be a bit tricky to navigate, and in recent months the IRS has been warning of inflated or incorrect filing claims. That’s why we’re going to take a closer look at the ERC and understand why American Financial and Tax’s AI software is a game-changer for business owners.
Understanding the ERC
First, let us do a quick refresher on the ERC. The credit is available to businesses that either experienced a full or partial suspension of operations due to government orders related to COVID-19 or businesses that saw a significant decline in gross receipts compared to the previous year. The ERC is calculated based on the number of employees kept on payroll during the pandemic.
IRS Warnings of Inflated or Incorrect Claims
The IRS has recently expressed concern over inflated or incorrect ERC claims. In particular, they are looking out for businesses that are claiming the credit for employees that were not actually retained during the pandemic or businesses claiming a much larger credit than they’re supposed to. The IRS is currently auditing thousands of businesses that made ERC claims, and if they find an error, businesses could face penalties or even criminal charges.
Why American Financial and Tax’s AI Software is a Game-Changer
Fortunately, American Financial and Tax has a solution. They are the only company that has an AI software that will check ERC filings for free, and give an audit assessment to check to see if the filings are correct. This is a game-changer, as it allows businesses to be proactive and catch any errors before the IRS does. The software also provides valuable insights on how to optimize your credit, ensuring that any money still owed is received, and if paybacks are necessary they will file this as well. Due to the extreme complexity of the ERC program 90% of CPA’s and ERC processing companies have unintentionally created miss filings for their clients. The only option currently available to find and fix these errors is American Financial & Tax’s proprietary Software, making them the only and clear choice for a company’s ERC needs.
The Benefits of Optimizing Your ERC Claim
Optimizing your ERC claim is not just about avoiding IRS audits or penalties, it also has direct benefits to your business. Businesses are leaving 10’s if not hundreds of thousands of dollars on the table due to incorrect in some cases, in others they are subjecting themselves to paying back the money they received with penalties upwards of 25% plus interest. Filing an optimized ERC claim can provide significant financial relief to your business and your peace of mind during a trying time.
How to Get Started
If you are a business owner looking to claim the ERC, it’s crucial that you do it correctly. Start by working with a trusted partner like American Financial and Tax, who can guide you through the process and ensure that your claim is accurate. With their AI software, you can have safety knowing that your ERC claim is optimized and error-free. The Employee Retention Credit is a valuable provision of the CARES Act, but it can be confusing to navigate, especially with recent IRS warnings of inflated or incorrect claims. That’s why American Financial and Tax’s AI software is such a game-changer for business owners. By catching errors before the IRS does and optimizing your credit, you can get valuable financial and mental relief. Don’t wait – work with a trusted advisor to ensure that your ERC claim is accurate and optimized for your business’s success.