ERC Tax Credit - What are your experiences and stories with Employee Retention Credit claims?

Thanks for the info! I'm confused about the "partial suspension" part. My restaurant had reduced capacity requirements for about 6 months in 2020. We stayed open the whole time but could only use 50% of our tables. Would that qualify as partial suspension? My accountant said yes but one of these ERC companies said I could claim for ALL of 2020 and 2021 which seemed fishy.

The reduced capacity restrictions would likely qualify as a partial suspension of operations for the specific quarters when those restrictions were in place. This is actually one of the legitimate examples of partial suspension - when government orders directly restricted how you could operate your business. What wouldn't be legitimate is claiming the credit for quarters after those restrictions were lifted. Many of these ERC companies would try to stretch the impact, arguing that even after restrictions ended, your business was still "partially suspended" due to lingering effects. That's where many businesses could get into trouble with the IRS.

How long did it take them to analyze everything? I've got a ton of documentation from those periods and I'm worried about the time investment. Also, did they handle the actual filing or just tell you if you qualified?

Sounds too good to be true honestly. These ERC mills are everywhere. How do you know this isn't just another one of those companies trying to get commission from submitting claims that'll be rejected? Did you actually get your money yet?

The analysis took about 2 days once I uploaded all my documents. I was surprised it was that quick considering how thorough they were. They don't just tell you if you qualify - they provide a detailed explanation of exactly which quarters you qualify for and why, plus they prepare all the documentation you need for filing. They don't work on commission like most of those ERC firms. Their approach is completely different - they actually denied eligibility for several quarters where I thought I might qualify, which honestly gave me more confidence in their assessment. And yes, I received my refund about 4 months after filing, which is pretty standard these days with the IRS backlog.

Wait how does that even work? The IRS phone system is famously impossible to navigate. Does this actually get you to a real person or just another automated system?

This seems like a scam. There's no way to "skip the line" with the IRS. They're understaffed and overwhelmed. I've been waiting 11 months for my ERC and just have to be patient like everyone else. No magic solution exists.

It's not a "skip the line" service - they use an automated system that navigates the IRS phone tree and waits on hold for you. When they reach a live agent, they call you and connect you directly. It saves you from having to personally wait on hold for hours. The service is legitimate - I was connected to an actual IRS agent who had access to my file and could tell me exactly where my claim stood in the process. It doesn't speed up the processing time, but at least I got confirmation my claim hadn't been lost and an estimate of when I might hear back.

Do you know if the IRS is actively auditing claims right now? My brother used one of those ERC specialty firms and got almost $400k, but I'm worried he's going to end up owing it all back plus penalties.

Yes, the IRS announced earlier this year that they're significantly increasing audit activity specifically targeting ERC claims. They've actually paused processing new claims while they develop better fraud detection systems and have added staff specifically for ERC audits. If your brother used an ERC mill that made questionable eligibility determinations, he should seriously consider talking to a qualified tax professional immediately - not the firm that filed the claim. The IRS has stated they're focusing on claims that show "common indicators of non-compliance," and those $400k claims from businesses that didn't experience clear revenue drops or government shutdowns are prime targets.

This is unfortunately a common situation. Many of these ERC mills collected their fees and have now disappeared, leaving clients exposed to potential audit risk. As a tax professional, I would recommend: 1) Gather all documentation about how the firm determined you qualified. Did they provide a detailed eligibility analysis? 2) Consult with a reputable tax professional (CPA or tax attorney) who can review your specific situation and documentation. 3) If the determination was clearly improper, you might want to consider a voluntary disclosure to the IRS, though the formal program has ended. The IRS is most concerned with willful fraud. If you relied on what you believed was professional advice in good faith, that's a factor the IRS will consider, though it doesn't eliminate repayment obligation if you truly didn't qualify.