Frequently Asked Questions
Below, we’ve pulled together our most commonly asked questions around specialty tax credits or working with Strike.
Financial service companies may be unaware that their clients qualify for the ERTC, or they may not want to wade into what seems like a complicated new tax credit. Repeated changes to the ERTC program have added additional barriers to claim the credit. Additionally, instead of trying to adapt to the changing ERTC rules, many CPAs and payroll companies have chosen to outsource ERTC claims for their clients. As a specialty tax company, we love claiming credits like the ERTC for our clients.
Even though the ERTC officially ended on September 30, 2021 with the signing of the Infrastructure Bill, the Bill also allowed business owners the ability to retroactively claim the credit up to five years from when they filed their original return (extended from the previous 3-year statute of limitations).
The IRS clarified in Notice 2021-49 that business owners with a majority stake (51%) in a business cannot claim their wages when they apply for the tax credit. Attribution rules, which outline the legal principal owners of a business, must also be applied to determine if family members’ wages can be qualified wages too.
If a business owner qualifies for the ERTC in 2020 or 2021 but hasn't applied yet, the only way to apply for the ERTC right now is to file an amended Form 941-X. With up to $26,000 per employee available, filing an amended return makes financial sense.
The best way to check on your tax credit status is to call the IRS at (877) 777-4778. Staffing problems have made reaching a live person difficult but not impossible. We recommend calling the IRS hotline first thing in the morning. Strike sees an average refund time of about 3-6 months from the date the 941-X is filed.
The ERTC is a direct refundable payroll credit and not a loan. While the ERTC funds will not run out, taxpayers have limited time to claim the tax credit.