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The Employee Retention Tax Credit (ERTC) is a valuable opportunity for Florida businesses that experienced financial hardship due to COVID-19 in 2020 and 2021. At Furdock Law, we specialize in helping Florida businesses navigate the complexities of ERTC eligibility and claims.

To qualify for the ERTC in Florida, your business must meet specific criteria:

1. Be a private-sector business or tax-exempt organization

2. Have experienced either:
   a) A full or partial suspension of operations due to government orders related to COVID-19, or
   b) A significant decline in gross receipts

For 2020, a significant decline means your quarterly gross receipts were less than 50% compared to the same quarter in 2019. In 2021, the threshold was lowered to 20%, meaning your gross receipts needed to be less than 80% of the same quarter in 2019.Self-employed individuals cannot claim the ERTC for their own wages but may be eligible if they have employees. Government entities are generally ineligible, except for certain tax-exempt organizations like public colleges, universities, and hospitals in 2021.The number of full-time employees affects which wages qualify:

• For 2020: Businesses with 100 or fewer full-time employees could claim the credit for all employees, while larger businesses could only claim for employees not providing services.

• For 2021: The threshold increased to 500 employees, allowing more businesses to claim the credit for all employees.

The ERTC can provide significant financial relief to eligible Florida businesses. At Furdock Law, we specialize in your specific needs, providing expert guidance to maximize your ERTC claim while ensuring compliance with all regulations.

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To apply for an Employee Retention Credit (ERC) refund in Florida, follow these three key steps:

3. Assess your business's eligibility

4. Compute the qualified wages paid to employees

5. File amended quarterly tax returns to claim the credit

First, carefully evaluate whether your Florida business meets the ERC eligibility criteria. This involves examining factors such as revenue decline or full/partial suspension of operations due to government orders related to COVID-19.Next, calculate the qualified wages paid to employees during eligible periods. For 2020, this includes wages up to $10,000 per employee annually. In 2021, the limit increased to $10,000 per employee per quarter. Be sure to exclude wages paid to owners and their family members, as these do not qualify for the ERC.

Finally, claim the credit by filing amended quarterly employment tax returns (Form 941-X) for each eligible quarter. On these forms, you'll report the calculated ERC amount and request a refund.

It's important to note that the ERC claim process can be complex, with potential penalties for errors. The IRS is currently processing a backlog of claims, with refunds typically taking 6-9 months to be issued.

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Consequently, numerous enterprises experienced financial setbacks due to flawed guidance regarding the Employee Retention Credit. If you're facing similar circumstances, it might be prudent to consult legal experts. Frost Law provides assistance in resolving conflicts with tax preparers or ERC service providers, aiding affected companies in exploring their alternatives and potentially recouping additional funds. Furthermore, if your organization employed external payroll services or Professional Employer Organizations (PEOs) to claim the credit, you may encounter additional complexities. Some PEOs might have neglected to file for specific periods or withheld a portion of the rightful refund (including interest), resulting in further challenges and possible financial losses.

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In Florida, many businesses faced challenges with the Employee Retention Credit (ERC) during the COVID-19 pandemic. As legal actions related to ERC issues emerge nationwide, it's crucial for Florida business owners to understand their rights and potential recovery options.

At Furdock Law, we specialize in ERC-related matters. If you suspect your Florida business missed out on benefits or suffered losses due to mishandling by third parties, we can provide expert guidance. We're here to help you navigate disputes, understand your rights, and potentially recover funds you may be entitled to under the ERC program.

Given recent changes in ERC claim processing, including the IRS moratorium announced in September 2023, professional legal advice is more important than ever.

Furdock Law offers the tailored legal support Florida businesses need to address their specific ERC concerns effectively.

It's important to note that the ERC process is currently affected by an IRS moratorium on processing new claims. The moratorium began on September 14, 2023, and is expected to be lifted before the summer of 2024. During this time, the IRS is focusing on reviewing claims based on partial suspension of operations criteria.  

The Employee Retention Credit (ERC) process differs from the Florida workers' compensation process described in some of the search results. Here's how the ERC compensation process generally works:  

1. Eligibility determination: Employers must first determine if they qualify for the ERC based on either experiencing a full or partial suspension of operations due to government orders limiting commerce, travel, or group meetings, or a significant decline in gross receipts compared to 2019.  

2. Calculation of credit: Eligible employers calculate the credit amount based on qualified wages paid to employees during eligible periods. The credit can be up to $5,000 per employee for 2020 and up to $7,000 per employee per quarter for the first three quarters of 2021, for a maximum of $21,000 per employee in 2021.  

3. Filing amended returns: Employers claim the ERC by filing amended quarterly employment tax returns (Form 941-X) for the relevant periods. The deadline for claiming the 2020 ERC has passed, but employers can still claim the credit for eligible quarters in 2021.  

4. IRS processing: After filing, the IRS reviews and processes the amended returns. As of September 14, 2023, there is a moratorium on processing new ERC claims, but the IRS is still processing claims filed before that date, albeit at a slower rate.  

5. Refund issuance: If approved, the IRS issues a refund to the employer. Based on experience, it typically takes approximately nine months for the IRS to provide a refund after filing an amended Form 941-X.  

Employers should be aware that the IRS is scrutinizing ERC claims closely, particularly those based on partial suspension of operations. The IRS has released guidance describing situations that do not qualify employers for the ERC.  

Unlike the Florida workers' compensation process, which involves multiple stages including mediation and hearings, the ERC process is primarily handled through IRS filings and reviews. There is no formal dispute resolution process like that seen in workers' compensation cases. If an employer disagrees with an IRS determination regarding their ERC claim, they would need to follow standard IRS appeal procedures.

If you've incorrectly claimed the Employee Retention Tax Credit (ERC) in Florida, there are potential consequences and steps you should take to address the situation.  

For businesses that have already received an ERC refund based on an incorrect claim, the Internal Revenue Service (IRS) is offering a special voluntary disclosure program until March 22, 2024. This program allows businesses to repay 80% of the claimed amount, with the IRS forgiving the remaining 20%. By participating in this program, you can avoid penalties and interest that would otherwise apply.

If your ERC claim has not yet been processed, you have the option to withdraw it if you now realize it's ineligible. This proactive approach can help you avoid potential complications down the line.  

It's crucial to understand that incorrect ERC claims can lead to serious consequences, including:  

1. Repayment requirements  

2. Penalties and interest  

3. Potential audits  

4. Expenses related to resolving the incorrect claim or representation in an audit  

The IRS has identified several red flags that may indicate an incorrect ERC claim, such as:  

• Claiming the credit for too many quarters  

• Misinterpreting qualifying government orders  

• Incorrect employee calculations  

• Claiming based solely on supply chain issues  

• Claiming for periods when the business didn't exist or pay wages  

At Furdock Law, we specialize in addressing these complex tax issues for Florida businesses. Our team can provide the legal support you need to navigate the ERC claim process, ensure compliance, and resolve any potential issues with the IRS. We understand the intricacies of Florida tax law and can offer tailored advice to protect your business interests.  

If you're concerned about the accuracy of your ERC claim or need assistance with the voluntary disclosure program, it's crucial to act promptly. Seeking professional legal guidance can help you make informed decisions and mitigate potential risks associated with incorrect ERC claims.

The Employee Retention Tax Credit (ERTC) withdrawal process in Florida varies depending on your specific circumstances. Here's an overview of the current procedures:  

If you haven't received a refund and your claim isn't under audit:  

1. Make a copy of your adjusted return (e.g., Form 941-X) that includes the ERTC claim you wish to withdraw.  

2. Write "Withdrawn" in the left margin of the first page.  

3. On the right margin, have an authorized person sign, date, and write their name and title.  

4. Fax the signed copy to the IRS ERTC claim withdrawal fax line at (phone number).  

For claims under IRS examination:  

Contact your assigned examiner or respond to the audit notice with your withdrawal request if no examiner has been assigned.  

If you've received but not cashed or deposited the refund check:  

Follow the IRS instructions for returning the voided check along with your withdrawal request.  

It's important to note that the IRS will send a letter confirming whether your withdrawal request was accepted or rejected. The withdrawal is only effective once you receive the acceptance letter.  

For the most up-to-date and personalized advice regarding your ERTC situation in Florida, we recommend consulting with our experienced team at Furdock Law.

Letter 6612 is a crucial communication from the Internal Revenue Service (IRS) regarding Employee Retention Tax Credit (ERTC) claims. This letter serves as an official notification to employers in Florida and across the nation that their ERTC claim is under audit.

The IRS initiated this process in response to a significant increase in ERTC applications, some of which may not meet eligibility requirements. As a result, the agency has temporarily suspended processing new claims and is now scrutinizing pending applications more closely.

When you receive Letter 6612, it's important to understand that:  

1. Your ERTC refund is on hold pending the audit's conclusion.  

2. You have a 30-day window from the letter's mailing date to respond with the required documentation.  

3. Failure to meet this deadline may result in the disallowance of your entire ERTC claim.  

The letter typically includes Form 4564, an Information Document Request (IDR), which outlines specific documentation needed to verify your eligibility. This may include:  

• Payroll records  

• Evidence of business disruption due to COVID-19  

• Financial statements  

• Detailed calculations of the claimed credit  

At Furdock Law, we specialize in ERTC matters and understand the complexities of Florida tax law. We can provide the legal support you need to navigate this audit process effectively. Our expertise can help ensure your response is comprehensive and timely, maximizing your chances of a favorable outcome.

If you've received Letter 6612 or have concerns about your ERTC claim in Florida, don't hesitate to seek professional assistance. Prompt and accurate action is crucial in these situations, and having experienced legal support can make a significant difference in protecting your rights and interests.

If you're seeking to expedite your Employee Retention Credit (ERC) refund in Florida, there are several strategies you can consider:  

1. Utilize the Taxpayer Advocate Service (TAS): You can submit a Form 911, Request for Taxpayer Advocate Assistance, to enlist TAS support in expediting your ERC claim. Explain your financial hardship due to the delayed refund and provide details on your ERC qualification.  

2. File a refund lawsuit: For employers certain of their ERC eligibility, initiating a refund suit may expedite claim processing. This approach is particularly relevant for businesses that clearly qualify under the gross receipts test or had operations suspended due to government orders.  

3. Congressional constituent request: Reaching out to your Florida senators or representatives may help, as some ERC refunds have been processed following inquiries from members of Congress.  

4. Prepare comprehensive documentation: Ensure you have all necessary documents to substantiate your claim, including quarterly financials, wage information, PPP details, and evidence of operational suspension.  

It's important to note that the IRS has faced significant delays in processing ERC claims. As of early 2024, the IRS was processing between 1,000 to 2,000 claims per week, with a substantial backlog. The agency also implemented a moratorium on processing new ERC claims filed after September 15, 2023, which may impact processing times.  

Don't let the ERC refund delays hinder your business recovery. Contact Furdock Law today to explore your options for expediting your ERC refund and securing the financial relief your Florida business deserves.

Yes, your Florida business may still be eligible for the Employee Retention Credit (ERC) even without showing a decrease in revenue. The key factor is whether your business experienced significant operational impacts due to government-mandated restrictions during the COVID-19 pandemic.  

For Florida businesses, eligibility for the ERC can be established through two main criteria:  

1. Revenue Reduction: A significant decline in gross receipts compared to the same quarter in 2019.  

2. Government Orders: Full or partial suspension of business operations due to government orders limiting commerce, travel, or group meetings.  

If your business faced operational limitations due to government restrictions, such as capacity limits, reduced hours, or supply chain disruptions, you may qualify for the ERC regardless of your revenue performance. This provision recognizes that some businesses maintained or even increased revenue despite facing significant operational challenges.

At Furdock Law, we specialize in navigating the complexities of ERC eligibility for Florida businesses. Our expertise can help determine if your specific situation qualifies, even if you didn't experience a revenue decrease. We provide tailored legal support to ensure you receive the maximum relief your Florida business deserves under the ERC program.

It's important to note that the ERC program has specific timeframes and requirements. While the program has ended for most businesses, claims can still be filed retroactively within the statute of limitations. Our team can assist in assessing your eligibility and guiding you through the claim process to maximize your potential benefits.

Yes, owning multiple businesses does not disqualify you from claiming the Employee Retention Credit (ERC) for each of them. In fact, the IRS treats a group of entities with common ownership as a "controlled group," considering them a single employer for ERC purposes.  

This arrangement can be advantageous for business owners in Florida. If one entity within your controlled group qualifies for the ERC, all entities within the group may potentially qualify. For instance, if you own a restaurant, a construction company, and a travel agency in Florida, and one of these businesses meets the ERC eligibility criteria, the benefits could extend to all your enterprises.  

The ERC offers a substantial refundable tax credit of up to $26,000 per employee, which can significantly exceed initial payroll tax liabilities. To be eligible, an employer must have experienced either:  

1. Full or partial suspension of business operations due to governmental orders limiting commerce, travel, or group meetings because of COVID-19, or  

2. A significant decline in gross receipts during specific calendar quarters in 2020 or 2021.  

For controlled groups, several ERC-related factors are aggregated, including:  

• Determination of a significant decline in gross receipts  

• Calculation of average employee numbers  

• Computation of qualified wages  

It's important to note that while the controlled group status allows for broader qualification, it also means that an employee working for multiple entities within the group can only be claimed once for the credit.  

Remember, the ERC remains available for controlled groups, potentially allowing all your Florida-based businesses to qualify. Don't miss out on this opportunity to secure significant tax credits for your enterprises.

Yes, you can still qualify for the Employee Retention Credit (ERC) even if you received a Paycheck Protection Program (PPP) loan. However, you cannot claim the ERC on wages paid with forgiven PPP loan funds.

At Furdock Law, we specialize in helping Florida businesses navigate the complexities of ERC and PPP programs. Our team ensures you maximize your benefits while staying compliant with federal regulations.  

For Florida employers, it's important to document which wages were paid with PPP funds and which can be used for ERC claims. Furdock Law is here to provide the legal support you need to make the most of these opportunities.

No, the Employee Retention Credit (ERC) is not a loan. It's a fully refundable tax credit for eligible Florida businesses. You don't need to pay it back, and it can be claimed retroactively.

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No, all businesses are eligible unless you are self-employed or a state or local government employer.

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To qualify for the Employee Retention Tax Credit (ERTC) in Florida, there is no minimum employee requirement. Businesses of all sizes, from sole proprietorships to large corporations, can potentially be eligible. However, there are maximum employee thresholds that affect how the credit is calculated:

For 2020, the threshold was 100 employees. Businesses with 100 or fewer full-time employees could claim the credit on wages paid to all employees, whether they were working or not. Larger businesses could only claim the credit for wages paid to employees who were not providing services.

In 2021, this threshold increased to 500 employees. Florida businesses with 500 or fewer full-time employees could claim the credit on all wages, while larger companies were limited to claiming it only for employees not providing services.

It's important to note that these employee counts are based on average full-time equivalent employees in 2019. Part-time employees are included in this calculation on a proportional basis.

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No, the Employee Retention Tax Credit (ERTC) and Paycheck Protection Program (PPP) are completely different initiatives. Although both were created to offer financial support to businesses during the COVID-19 crisis, they function separately. The PPP gives forgivable loans for specific costs, whereas the ERTC provides a tax credit to employers who keep workers on their payroll. These programs have distinct purposes and mechanisms for assisting businesses.

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The cost can vary significantly depending on the complexity of the case and the type of audit involved. Generally, the costs fall into these ranges:  

• Correspondence Audit: $2,500 – $7,500  

• Office/Desk Audit: $5,000 – $15,000  

• Field Audit: $10,000 – $25,000  

• IRS Appeals: $5,000 – $20,000+  

1. For employment lawyers in Florida (which may handle ERC cases), hourly rates typically range from $400 to $500 per billable hour.  

2. However, many employment lawyers, including those handling ERC cases, often work on a contingency basis. This means the lawyer only gets paid if the client recovers money, and the fee is typically a percentage of the recovery.  

3. Some lawyers may offer flat rate fees for specific services, like writing a demand letter or reviewing a settlement offer.  

4. Limited scope retainers are another option, where the lawyer's involvement is restricted to specific tasks agreed upon with the client.  

It's important to note that while these figures provide a general range, the actual cost can vary based on the specific circumstances of each case, the lawyer's experience, and the complexity of the ERC claim. Additionally, given the IRS's increased scrutiny on ERC claims, the complexity and potential costs of representation may be higher for cases involving questionable claims or those targeted for audit.