IRS Processing Interruptions and the Rise of Third-Party Service Providers Set the Stage for Potential Missteps
COLUMBUS, Ohio, Sept. 29, 2023 /PRNewswire-PRWeb/ -- Today, Arvo Tech, the platform that helps employers transform cash flow by simplifying access to employment tax credit opportunities, is sharing insights on how businesses can ensure they do not fall victim to Employee Retention Tax Credit (ERTC) mills, while also outlining the potential pitfalls companies might face if they partner with unreliable providers. With the recent announcement that the IRS is halting processing new claims for ERTC, Arvo Tech aims to help businesses compliantly benefit from the COVID-era program that offers up to $5,000 per employee retained for 2020 and up to $7,000 per employee per quarter for the first three quarters of 2021.
"There is a noticeable surge in new service providers entering the tax credit realm, likely drawn in by the ERTC program's potential gains," said Terracina Maxwell, President and Co-Founder of Arvo Tech. "Our mission at Arvo Tech is not merely to simplify this domain for business but to ensure that they do it right while also protecting them if they ever get audited."
How can businesses be sure they are working with a reputable tax credit partner? Arvo Tech outlines some of the key things companies need to look out for when choosing a partner:
- Thoroughly Vet Services: Delve into the provider's history and check their knowledge in the tax credit arena. Positive client testimonials, an exemplary track record, and accolades are a good starting point. But arguably, the most important thing is to ensure that the service has experience in tax credits and compliance that predates COVID-era programs such as the ERTC; accordingly, you should ensure that they have client testimonials that pre-date ERTC and other COVID-era programs.
- Evaluate Eligibility: Compliant providers operate with clarity, offering insight into how they are determining eligibility and documenting their findings in writing. Because of the complexities of the program, be wary of any provider that asks you to self-assess your business's qualifications for the program or those that don't provide their expert assessment of your eligibility.
- Understand Insurance Implications: Ensure the partner you choose provides proof of professional liability insurance in the event they incorrectly qualify your company. Predatory service providers often have stringent terms within their contracts, alleviating them of any liability if a company gets audited and claims are disallowed. Look out for things like "I agree to defend and indemnify tax credit provider from any adverse actions as a result of credits claimed for the Employee Retention Tax Credit" or "You agree that you have the knowledge, experience, understanding, professional advice, and/or information to make your own evaluation of the merits, risks and applicable compliance requirements under applicable laws of any use of our Services and are not relying on us." These are actually provisions in the contract language of some of the new providers who are spending heavily on advertising. A good tax credit provider should stick with you through the end, helping you navigate potential audits and other inquiries into your claims.
Improperly claiming the ERTC can wreak havoc on a business, resulting in repayments, penalties, and time to manage the audit. If the IRS does audit a claim, companies must defend how they qualified as eligible for the credit, including ownership structures, determination of full-time employees, what constitutes a government order, and more.
According to an Ohio restaurant owner and Arvo tech client, "navigating the ERTC maze seemed like an insurmountable challenge. With Arvo's guidance, not only did we maximize our benefits, but we also gained an invaluable partner who championed our interests with unparalleled expertise and dedication. Their holistic approach has been a game-changer for us, ensuring we remain compliant while optimizing our fiscal benefits."
To learn more and determine if your business is eligible for ERTC, visit arvotech.com.
About Arvo Tech
Arvo Tech helps employers transform their cash flow by simplifying access to employment tax credit opportunities. Founded by tax experts, Arvo Tech believes in the power of tax credits for improving business financials and built its cloud-based platform to help more businesses unlock the full value of federal and state incentive programs. Backed by a proprietary technology platform and unparalleled client service, Arvo Tech collaborates with companies to deliver actionable insights for leveraging programs that impact hiring decisions and fundamentally improve the economics of their business.
Media Contact
Aimee Eichelberger, Superior PR, 312-952-1528, [email protected]
SOURCE Superior PR
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