In most cases, a medical establishment or business may be eligible for ERC if they have full-time W-2 employees, and the business must fall into at least one of the two following categories:

• Your business(es) experienced decreased revenue during quarters 1-4 and 1-3 of 2020 and 2021, respectively, compared to 2019
• Your business(es) were impacted by government-mandated restrictions

‍

Government mandated restrictions can include a wide array of things. Examples might include but aren’t limited to, partial or full shutdowns, cleaning procedures that reduced procedural/operating time, capacity limitations for waiting rooms, or having to restructure certain appointments, such as a veterinary practice seeing animals curbside. 

‍

Many medical establishments and businesses may have also taken part in the PPP loan(s), or Paycheck Protection Program, in 2020 or 2021 and wonder if that affects their ERC eligibility. Regardless of whether you received PPP loans 1 and/or 2, you may still qualify for ERC. Speaking with an experienced CPA about your medical business will help to give you a better understanding of your ERC eligibility. 

Business owners who have filed for ERC may be wondering when they can expect to receive the tax credit. With so many businesses being affected by the pandemic, the IRS has a high volume of applications to process. Every case is unique and will have a different timeline. Your refund may be processed in about 8 months, although it could take longer. 

‍

If you wish to check the status of your refund, you may use the “Where’s My Refund?” feature on the IRS website, or you can call the IRS.

For many doctors and businesses in the medical industry, ERC can be a great financial relief, but it is important to make sure you and your tax planners are diligent and thorough when examining your eligibility. It is critical to note that the IRS will carefully examine your claim for this credit. Claiming ERC based on false information can lead to compliance risks such as ERC audits in the future, setting up a potential disaster.

‍

Strategic Tax Planning’s experienced tax professionals and CPAs will work closely with you and your business, ensuring all of your ERC qualifications and facts are accurate and in order. We are here to help you receive your deserved relief for persevering during difficult financial times.