I’m continuing to get a lot of questions about the Employee Retention Credit, so let’s dig into a few.
How does the credit work? Will I get a credit on next year’s income taxes?
Like so many other things in taxation, this program has a lousy and misleading name. It doesn’t work like other credits, because it’s refundable. As such, we are talking about getting you a check. This would not just be at the end of the year either. We would get you a check for each quarter where the credit is claimed.
How quickly will I get my payment for the credit?
No idea. Nothing is working terribly fast now in government. To speed things up we’ll file these electronically to make sure that they’re processed quickly. We don’t want the credits to get bogged down in the normal paper shuffle.
Do I qualify for the credit?
Just about anyone with a business and a pulse can qualify. If your business was negatively affected by the pandemic, such as not being able to hold meetings because people were afraid to meet face to face, then you qualify.
Your business doesn’t need to be down a specific number to qualify. Your business didn’t need to be shut down in order to qualify. You just need to be negatively affected by the pandemic. Who wasn’t?
Do I have to spend my Employee Retention Credit on anything in particular?
Nope. I’m yet to read anything that says there are any restrictions whatsoever on these refunds. Unlike the PPP Loan or the EIDL, I can’t see anything that says you have to use it specifically for this or that. I hope you’ll spend your’s wisely; on the vacation of your choice. We could all use one about now.
Our consulting and preparation package includes everything you’ll need to claim and receive this credit. It even has a full set of amendments, should the need arise.
Additional information about the credit can be found at the following web address.
Let me leave you with this.
There seems to be a lot of misinformation going on about the extension of the income tax season, so let me clarify a few things.
THE ONLY THING THAT WAS EXTENDED WAS THE DUE DATE FOR 1040’S AND THE PAYMENTS THAT GO WITH THEM.
C Corporations are still due April 15, 2021.
Trust returns are still due April 15, 2021.
Estate returns are still due April 15, 2021.
1st Quarter 2021 Estimated Tax Deposits are still due April 15, 2021.
How that’s going to work is beyond imagination. How are we going to know what to deposit on April 15th, if the 2020 returns aren’t done yet? This sounds like yet another way for them to extract penalties from taxpayers for no good reason.
In further news, Senator Sanders has introduced two tax bills which would substantially alter our current system of taxation.
The first radically alters estate taxes to almost their former levels. This would increase the tax rate to 45% on estates over $3.5M. This would again mean that farms that have been in the same family for generations would again face being sold just to pay the estate taxes.
Another bill aptly named The Corporate Tax Dodging Prevention Act would again raise income tax rates on C Corps to 35% from their current 21%.
Meanwhile, back at the ranch. The Executive Branch is in the planning stages of doing what they promised to do which is raise taxes.
They’re coming. I’m telling you now, that you’ll need to do anything and everything possible to offset the onslaught you are about to see at all levels of government.
The Employee Retention Credit is one of the ways that you will be able to offset this nightmare. Sign up for our package today.
We’re all going to get through this. Let’s get through it together.
Accounting Solutions Ltd. stands ready to complete our mission and purpose of protecting you, your family, and your business. If there is anything you need, whether you are a current client or not, you have but to ask. I’m here and I remain,
Accounting Solutions Ltd.
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