Can Nonprofits Claim the ERTC? 

 November 14, 2023

By  Jace W Campbell, CPA

Can Nonprofits Claim the ERTC

The Employee Retention Credit (ERC) is a cornerstone of the Coronavirus Aid, Relief, and Economic Security (CARES) Act… It was designed to help businesses keep their employees on payroll during the COVID-19 pandemic. Nonprofit organizations, too, can take advantage of this provision… However, as with any other tax-related subject matter, understanding the ERC requires a deep dive into its intricate details. So let’s unravel the complexities together…

What is the Employee Retention Credit?

The Employee Retention Credit is essentially a refundable tax credit against certain employment taxes… The key purpose of this program is to encourage businesses to keep their employees on payroll despite facing economic hardships related to COVID-19. As such, it’s crucial that you understand the specifics if you’re considering applying.

Now one might wonder: How does one qualify for this credit? Well, let’s address that…

Eligibility for Employee Retention Tax Credit

To be eligible for the ERTC, an employer must have operated a trade or business during calendar year 2020 and either: experienced a full or partial suspension of operations due to orders from a government authority limiting commerce, travel or group meetings due to COVID-19; or witnessed a significant decline in gross receipts.

This credit isn’t just for businesses… Nonprofits also qualify if they meet these criteria.

There’s another aspect you should be aware of… Many firms use deceptive tactics to lure nonprofits into applying for ERTC. Let’s look at some common misconceptions these firms propagate…

Common Misconceptions about ERTC

Some firms may promise guaranteed results without having complete information about your organization’s financial condition… They may present an overly simplified view of how easy it is to obtain the credit… Don’t fall prey! It’s important to understand that each case is unique and involves detailed analysis.

While ERTC can indeed be a valuable lifeline for organizations navigating these uncertain times, it’s not without its challenges. Remember… You are ultimately responsible for these tax credit claims. And don’t let any ERTC “expert” convince you otherwise.

But there’s more to this story… Recently, the IRS has been cracking down on ERC promoters…

The IRS Crackdown on ERC Promoters

The Internal Revenue Service (IRS) is tightening its grip on ERTC fraud… In recent times, it has launched a stern crackdown on ERC promoters who have been exploiting the system. The goal of this initiative is to ensure that only deserving businesses and nonprofits receive the credit they rightfully deserve.

There’s a considerable amount of confusion in the marketplace due to firms peddling false information about ERTC… They make exaggerated claims about their expertise and dangle tantalizing promises of “free” money with no risk. But don’t be fooled!

Also read: Refundable vs Nonrefundable: What is the difference for ERTC?

Beware of Dubious Claims

The truth remains that these firms’ interests may not align with yours… They can make all the dubious claims they want about their expertise, but at the end of the day, it’s important to remember one crucial fact – the taxpayer is always responsible for their own tax filings.

It’s disheartening to see rampant fraud in this industry… As a licensed CPA and owner of a registered CPA Firm with the State Board of Accountancy in Texas, it’s my responsibility to inform you about these deceptive practices.

Understanding ERTC – Your Safeguard Against Fraud

In order to protect yourself from such fraudulent activities, gaining an understanding about ERTC becomes critical for your decision-making process when claiming these credits… So let’s delve deeper into what ERTC is and how it came into existence.

To counteract these concerns, how can one ensure they’re navigating this process correctly? This is where JWC ERTC Advisory CPA comes into play…

Why Engage JWC ERTC Advisory CPA?

In the midst of fear, uncertainty and gain, engaging with an advisory like JWC ERTC Advisory CPA can provide you with much-needed assurance. We adhere strictly to the ethical guidelines while serving our clients. Plus, we can also conduct an independent eligibility review for taxpayers who have previously filed for ERTC but are skeptical of their eligibility..

Also read: Employee Retention Credit Expiration Date

Our commitment is towards accurate and ethical filing… This makes us stand out from other ERC firms who may not prioritize your best interests.

In conclusion, understanding and applying for the Employee Retention Credit doesn’t have to be overwhelming or fraught with deception… With the right guidance from experts like JWC ERTC Advisory CPA, nonprofits too can navigate this process effectively.

Jace W Campbell, CPA

Jace founded JWC ERTC Advisory CPA in March 2021 as the nation's first and only public accounting firm focused solely on ERC . . . and nothing else. He has personally signed over 9,000 ERTC claims and is proud to be executing these claims conservatively, and how intended by Congress.

He has a passion for educating clients so they can make the best decision for themselves.  If you read articles and watch videos that Jace produced in 2021, his approach is the same now as it was then.

While other firms pivot their messaging to comply with new IRS guidance, Jace continues preaching the same conservative principles that have helped clients recover hundreds of millions . . . while sleeping easy at night.

related posts:

Can You Claim Employee Retention Credit in 2023?

Can You Claim the Employee Retention Credit in 2022?

Employee Retention Credit Scams: What You Need to Know

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