As a small business owner, you may be feeling the financial strain of the ongoing pandemic and the resulting economic downturn. Thankfully, there are a number of resources available to help your business weather this storm, including the employee retention credit (ERC). The ERC is a refundable tax credit designed to help employers keep their employees on payroll, and it could provide a much-needed financial boost to your business.
The ERC was initially created as part of the CARES Act in 2020, and it has since been extended and expanded under the Consolidated Appropriations Act of 2021 and the American Rescue Plan Act of 2021. The credit is available to businesses that experienced either a full or partial suspension of operations due to a government order, or a significant decline in gross receipts compared to the same quarter in the prior year.
If you believe your business may qualify for the ERC, it’s important to take advantage of this valuable tax incentive. However, navigating the complex rules and calculations associated with the ERC can be challenging for small business owners, particularly those who may not have a dedicated team of accountants and tax professionals. This is where seeking assistance from the IRS could be incredibly beneficial.
The IRS offers a helpline specifically for businesses and tax professionals who have questions about the ERC and other COVID-19 related tax relief measures. By calling the IRS helpline, you can speak with a knowledgeable representative who can provide guidance on how to determine your eligibility for the credit, how to calculate the amount of the credit, and how to claim the credit on your tax return.
When calling the IRS helpline, it’s important to have all relevant documentation and information readily available, including payroll records, financial statements, and any other documentation that may support your claim for the ERC. This will help the IRS representative provide you with the most accurate and helpful guidance.
In addition to the IRS helpline, there are also a number of online resources available to help small business owners understand and take advantage of the ERC. The IRS website, in particular, offers a wealth of information and guidance on the ERC, including Frequently Asked Questions, tips for claiming the credit, and updates on any changes to the program.
As a small business owner, it’s important to explore all available options for financial assistance during this challenging time. The ERC can provide a valuable lifeline for businesses struggling to stay afloat, and seeking assistance from the IRS helpline or other resources can help ensure that you maximize the benefits of this important tax credit. Don’t hesitate to reach out for help – the IRS is just a phone call away!