Understanding the ERC’s More than Nominal Requirements

At a glance: The main takeaway: The IRS has clarified the definition of “more than nominal” as it relates to partially suspended operations for ERC eligibility, underscoring the importance of a carefully calculated and thoroughly documented credit to mitigate audit risk. Impact to your business: Companies now have a clear benchmark to assess whether they satisfy the…

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Employee Retention Credit: Are U.S.-based Subsidiaries of International Companies Eligible?

People talking in front of building

At a glance: The main takeaway: With changes passed under the Consolidated Appropriations Act, more businesses are eligible for the Employee Retention Credit, potentially those that are U.S.-based subsidiaries of international companies. Impact on your business: To assess your eligibility, you need to have a solid understanding of the controlled group rules, which can help you identify…

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How Mixing Family and Business Could Impact Your ERC

At a glance: Family attribution rules and the ERC: If your business has any shareholders that are also family members, family attribution rules mean your company may be part of a controlled group. Impact on your business: Being part of a controlled group doesn’t disqualify you from claiming the ERC, but it could impact your credit value.…

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It’s Here: The HHS Releases New Provider Relief Fund Guidance on Reporting

At a glance: The main takeaway: The U.S. Department of Health and Human Services (HHS) has released new guidance that sheds some much-needed light on Provider Relief Fund (PRF) reporting requirements. Impact on your business: The HHS’s guidance specifically provides information on PRF usage deadlines and time periods, reporting responsibilities and how to conduct the…

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ERC Update Expands Eligibility to New Startups

At a glance: ERC update: The American Rescue Plan introduced a new group of Eligible Employers, categorized as recovery startup businesses. Expanded eligibility: The expanded criteria helps close the gap for recent startups that were previously ineligible, providing a new means of benefiting from the credit. Next steps: Any companies that started operations in 2020 should reassess their…

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How to Maximize your ERC and R&D Credit Values

At a glance: Taking a stance: Aprio’s interpretation of official guidance supports that businesses may use the same wages for both ERC and R&D credits for 2020, but there’s no double-dipping for 2021. Impact on your business: Companies claiming the ERC and R&D will see no impact now but could see a decreased R&D credit for the…

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3 Ways the New COVID-19 Relief Bill Impacts Your Business

30-Second summary: In addition to providing a new round of stimulus payments, the American Rescue Plan Act contains a host of provisions that will offer financial relief to businesses affected by COVID-19. If eligible, businesses stand to benefit most from the extended Employee Retention Credit, the launch of the Restaurant Revitalization Fund and expanded Provider…

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