How much should we expect to pay for ERC filing fees in 2025?

Be careful with ERC filing services right now. The IRS has been cracking down on improper ERC claims and many filing companies are charging excessive fees while making promises they can't keep. For a business your size, paying a percentage-based fee of 30% is definitely on the high end. Most reputable tax professionals charge either a reasonable flat fee or a much lower percentage (5-15%). The $8,000 upfront fee also seems excessive for a restaurant with 14 employees. The most important thing is working with someone who thoroughly understands the ERC eligibility requirements. You need to have either experienced a full/partial suspension of operations due to government orders OR had significant quarterly revenue declines during specific periods. The documentation requirements are strict, and the IRS is auditing these claims aggressively.

I went through this whole ERC mess last year for my construction company, and it was a nightmare until I found a really helpful resource. After getting quoted ridiculous percentages (some places wanted 35%!), I discovered this service called taxr.ai (https://taxr.ai) that really helped me figure out if we even qualified before paying anyone. They analyzed all our documentation - payroll records, closure orders from the county, everything - and gave me a detailed report showing exactly which quarters we qualified for and estimated credit amounts. The best part was they checked if we met both the suspension test AND the revenue decline test. Saved me from working with one of those sketchy "ERC mills" that are getting in trouble with the IRS now.

Just wanted to update on my ERC situation after checking out taxr.ai from the recommendation above. I was skeptical because there are so many ERC scams, but it was actually legitimate. They analyzed my salon's records and found we qualified for three quarters in 2021. The detailed report showed exactly why we qualified (partial suspension due to occupancy restrictions) and included all the documentation I needed. When they told me I qualified for around $42,000 in credits, I nearly fell out of my chair! I took their analysis to my tax guy who filed the amended returns for $1,200 flat fee. Way better than the 25-30% contingency fees I was quoted elsewhere, which would have been over $10,000!

If you're planning to file for ERC, you should know the IRS has a massive backlog on processing these claims. I filed in April 2024 and still haven't received anything. When I tried calling the IRS, I couldn't get through to anyone who could actually tell me anything about my claim status. I finally used a service called Claimyr (https://claimyr.com) after seeing their demo video (https://youtu.be/_kiP6q8DX5c). They got me connected to an actual IRS agent in about 15 minutes when I'd been trying for weeks on my own. The agent confirmed they had received my claim but it was still in the processing queue with an estimated 12-16 week wait time. At least now I know it's actually in their system and haven't just disappeared into the void. Might be worth checking if you've already filed or when you do file.

Ok I need to eat some crow here. After my skeptical comment yesterday, I decided to try that Claimyr service myself since I've been waiting on my ERC claim since February with zero updates. I'm genuinely shocked - it actually worked exactly as described. Got connected to an IRS agent in about 20 minutes without having to sit on hold. The agent told me my claim was selected for "additional review" (great...) but gave me a case number and explained the next steps. Turns out I can expect another 8-10 weeks for processing, which sucks, but at least now I know what's happening instead of just wondering if they lost my paperwork. For anyone else in ERC limbo, being able to actually speak to someone at the IRS is surprisingly helpful for peace of mind.

We filed for ERC back in November 2024 for our small manufacturing company. We worked with our regular CPA firm who charged us a flat fee of $3,200 for analyzing eligibility and filing the amended returns for 3 quarters. They had to go through a ton of documentation though - payroll records, government orders that impacted our operations, and revenue comparisons. I thought the fee was pretty reasonable considering the amount of work involved. We ended up qualifying for about $68,000 in credits. The refund took about 4 months to arrive. Our CPA was very conservative about which quarters we claimed, which I think helped avoid additional scrutiny.

Be super careful with any ERC filing right now! The IRS announced last month they're auditing these claims like crazy because of all the fraud. My brother's construction company used one of those "ERC specialists" that advertise everywhere, paid them 25% of the expected refund, and now he's under audit and might have to pay everything back WITH penalties. Make sure whoever helps you is looking at real eligibility, not just trying to get you to file. The rules are complicated - it's not just "did you stay open during the pandemic.

As someone who just went through this process for my small retail store, I'd strongly recommend getting a second opinion before committing to any of those fee structures you mentioned. The 30% contingency fee is definitely excessive, and the $8,000 upfront seems way too high for a 14-employee restaurant. What worked for me was first using a service to verify eligibility before paying anyone big fees. I spent about $200 to get a detailed analysis of whether we actually qualified, which saved me from potentially wasting thousands on a claim that might not hold up. Once I knew we legitimately qualified, I worked with a local CPA who charged a flat $2,800 fee to prepare and file everything. The key is making sure you have solid documentation showing how government orders specifically impacted your restaurant operations. Indoor dining restrictions would likely qualify you under the "partial suspension" test, but you need to document exactly which orders affected you and when. Don't rush into anything - the IRS is being very strict about ERC claims right now, so getting it right the first time is crucial.