For all IRS filings, it is up to the business owner to keep records that back up the numbers on the returns. Just like you’d keep receipts, mileage records, and bank statements for your regular business taxes, it’s vital to keep records on hand for your ERC filing. The IRS has operations in place to test its processes to ensure that tax filings across the country have been executed properly.
What records does ERC Specialists provide upon request to substantiate the ERC returns filed?:
We will provide you with copies of the questionnaire you completed as to how your business qualified. As well as any documents you provided to ERC Specialists relating to the returns, and our calculations of the credit.
Accuracy on this documentation is vital, and will support qualification for the credit. Remember, all the documentation we submit to the IRS comes from the company itself. This is why it is crucial for the company to be as honest and thorough as possible in the questionnaire and on their requested documents.
What records should an eligible employer maintain to substantiate eligibility for the Employee Retention Credit?
An eligible employer will adequately substantiate eligibility for the employee retention credit if the employer creates and maintains records that include the following information:
Documentation to show how the employer determined it was an eligible employer that paid qualified wages, including:
How long should an eligible employer maintain records to substantiate eligibility for the Employee Retention Credit?
An eligible employer should keep all records of employment taxes for at least 5 years after the date the tax becomes due or is paid, whichever comes later. These should be available for IRS review.
The post Substantiating the Employee Retention Credit appeared first on ERC Specialists.
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