YOU DON’T KNOW WHAT YOU DON’T KNOW…

Over the years American Business Incentive Services has been helping Small and Medium Businesses apply and recover their Federal and State Tax Incentives we’ve realized business owners don’t know what they don’t know, which is why we spend an enormous amount of time educating business owners and their CPAs.

WHAT YOU NEED TO KNOW:

Employee Retention Credit, there are A LOT of pop up companies that are strictly processing the ERC. And what they are not telling you is:

1. They have “payroll specialist” processing and amending your 941s. Do you trust a payroll specialist to process a legal binding Tax Form on your behalf?
2. They tell you “the IRS doesn’t Audit amended 941’s”. This COULD NOT be further from the truth. IRS FORM 941 are part of your taxes and can be audited.
3. Most of these companies and “payroll specialist” do not carry or have E&O (Errors and Omissions) Insurance. Which means if you, the business owner gets audited, YOU AND your CPA are responsible for the “payroll specialist” work.
4. They will NOT defend their work in case of an audit.
5. They are not calculating the ERC credits accurately and in many cases are overstating the recovery amount.
6. MOST IMPORTANT: These companies and some CPAs are stripping all of the expenses that have an effect on other credits you may qualify for and in doing so, you are leaving A LOT of money on the table!

Research & Development

1981 Economic Recovery Tax Act: In a temporary effort to boost the economy in 1981, the federal government sought to use the passage of the Economic Recovery Act incentives to reward businesses for investing in research and developing new products, processes, formulations, technology, techniques and innovations. With the rapid changes in technology in the past decades, companies across multiple industries have seen increasing challenges to constantly innovate their products or processes to compete across a global economy. Business owners small and large understand the expensive and time-consuming risks that drastic innovations pose and thus, often failing—yielding no financial return on investment.

Recognizing the need to create jobs domestically and maintain global economic competitiveness, Congress has extended the economic Recovery Act incentives and more than a dozen times over subsequent years making them permanent with the passage of the PATH Act of 2015. In addition to becoming permanent, the Protecting Americans from Tax Hikes act expanded R&D incentives and credit provisions to start-ups and small businesses. The R&D incentives and credits are now available to any U.S. business that spends time and resources on new development, improvements, or technological advancements in an effort to improve upon its products or processes. The credit could also be available to American Business owners who have improved upon the performance, functionality, reliability, or quality of existing products or trade processes.

American Business Incentive Services is a National Incentive Provider that has partnered with the largest and best incentive expert and firms with offices and representatives covering most of the lower 48 States.

Here’s the best part. It costs you $0 to see if you qualify!

EVERY DAY WE HEAR THESE SAME FIVE QUESTIONS OR COMMENTS:

1. “I thought my CPA does this for me.” We completely understand. As former business owners we thought our CPA filed for these incentives and credits as well. The fact is most CPAs specialize in “taxes” not “incentives and credits”. There are over 6,000,0000 (that’s million) words in the Code, over 50,000 pages long and over 70+ Federal Incentives available to businesses.
2. Sounds too good to be true? In 1981 President Reagan enacted Economic Recovery Act. It’s sole purpose was and is to spur the economy. In 2015 President Obama enacted the 2015 PATH Act (Protection Against Tax Hike) which added more incentives, eased the requirements, expanded the ability for almost any business to qualify and made the federal incentives permanent.
3. My CPA said I don’t qualify.” As previously mentioned, there are over 6,000,000 words in the tax code and unless your CPA has experience in all 50,000 pages ) of the tax code, they really don’t know how or if you qualify.
4. “Will this trigger an Audit?” No. These incentives and credit are based on the IRS Tax Code relating to each incentive. Our highly experienced CPAs that come from the Big 4 Accounting Firms have decades of experience processing the incentive using the correct accounting method. Either your company qualifies , or they don’t. Either the government accepts your application, or they don’t. If the IRS Disallows your claim then the case is “completed”.