WHY Tens of Thousands got ERC that Did NOT Qualify

Larry Gray, CPA breaks down IRS FAQ number five concerning the Employee Retention Credit. Listen carefully as to if and why your business does or does not qualify for the credit. Larry is very concerned that tens of thousands of businesses received the credit that did not qualify and will have to pay the money back to the IRS including interest and a penalty.
Link to IRS FAQ:
www.irs.gov/co...
Timestamp:
0:00 Intro
1:08 Two Ways to Qualify
3:36 Was There a Mandate?
6:58 Eligibility Explained
11:41 The Bottom Line
12:34 Supply Chain Criterion
Catch our previous ERC videos here:
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Is This Your Business? | IRS Clarifies ERC Supply Chain Questions with 5 Scenarios.
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How to Correctly qualify for the ERC. What to document. (2023 Update)
🎥 • How to Actually Qualif...
Amended ERC Income Tax Return Help. Tax Professionals' Due Diligence.
🎥 • Amended ERC Income Tax...
Warning Signs of a False ERC Claim | Small Business ERC Scheme Red Flags🚩
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[@ryjoph89]

Accounting firm owner from Seattle... Definitely makes sense (and how we have understood the spirit of the law was intended) But IRS has had so many moving targets with little clarrification causing confusion and the opportunity for fraudulent companies to jump in and take advantage. And IRS is not going to make waves with millions of businesses to check this- not enough man power. It was handled poorly for such a beneficial program.

[@frankalcini7581]

Larry great video. I only had a few clients that qualified and it was only for limited quarters, i spent more time fielding calls from clients about a "new" credit, everytime the marketers called it something else.

[@charleseaster4051]

There is a third door, Startup businesses that started operations after Feb 15th 2020

[@marthabustos4079]

My boss applied for ERC on February last year. His company was struggling, and some weeks did not have enough money to pay us. ERC marketing was sounding every day everywhere. He got the check on June and did not spend it because his CPA did found out and talked his that it was a scam. Two weeks later the IRS send him a letter to ask for the money back. He still have the checks and the question is what's the procedure to give back the ERC checks to the IRS without problem?

[@alanmckinney1141]

As soon as I realized that my difference in quarterly revenue missed the percentage required to qualify I pulled the plug on applying for the ERC. My intuition told me something wasn’t right about the other option to qualify - too easy on the surface. Seemed like a way for the IRS to come back on you with an audit. At least you can prove your revenue difference with hard numbers, invoices, deposits etc. I believe a lot of the requirements were by design in order to tempt and mislead small business owners in the first place.

[@miltonortiz3864]

Am CPA from Puerto Rico and I believe you are so right there is incredible fraud here on this topic

[@soulh4838]

There was a law passed in December 27, 2020 that made it possible for those who got the PPP loans, whether they were paid in full or forgive, to also qualify for ERC, 2 quarters of 2020, and 3 quarters of 2021!!

[@Cappy291]

Can the IRS withhold money from your ERC for taxes owed?
To date they have withheld about $20,000

[@frankalcini7581]

Larry what do you think about the irs coming down on income tax return preparers, as i have read the irs is taking the position doing the correct adjustments on their business return is making you a party to the ERC Fraud.
I am turning away any new clients that got ERC that used one of these mills.

[@brianholleran6340]

no one should ever have worked with companies that make them self attest smh... I am glad the people I work with actually have CPAs that sign the 941s

[@myboatflxscout5723]

When the going after the scammer!!!!!!!