Chambers that paid their employees W-2 wages during the pandemic, and were impacted by the COVID pandemic in 2020 and/or 2021, are likely eligible to receive the ERC
Chambers of Commerce can offer many important benefits to its members such as publicity, networking, or even marketing and advertising opportunities. Unfortunately, like many other industries, chambers were heavily affected by the COVID-19 pandemic mandates and restrictions. Whether it was from the cancellation of big events or having to transition to remote work, many of these Chambers of Commerce saw decreased revenue which created stressful times. Luckily, for those chambers that pay W-2 employees, there is still time to claim the Employee Retention Credit (ERC). ERC is part of the 2020 CARES Act, and it can provide up to $26,000 per employee for wages that have been paid.
If you manage a Chamber of Commerce and believe it may qualify or wish to discuss your chamber's eligibility, reach out to Strategic Tax Planning. You can speak with a Certified Public Accountant (CPA) for a free consultation by calling (202) 455-6010 or you may fill out this contact form, and we will reach out to you.
There are countless Chambers of Commerce throughout the country, all serving different groups of people and businesses. Typically, if your chamber consists of W-2 employees, then it may fall into at least one of the following two categories to qualify for ERC:
Government-mandated restrictions may include things like full or partial shutdowns limiting services offered to members, capacity limitations, cancellations of pre-planned events, restrictions on public gatherings, state or local orders requiring employees to work remotely, or overall altered hours of operation, among many others.
On top of this, chamber members may wonder how previously receiving the Paycheck Protection Program (PPP) loan in 2020 or 2021 may affect their ERC eligibility. Regardless of if you received PPP loans 1 and/or 2, you may still be eligible for ERC. Speak with a trusted CPA to discuss your Chamber’s eligibility.
If you are part of a Chamber of Commerce that is a nonprofit organization, then you still may be eligible to receive ERC, assuming you have W-2 employees and have been affected by COVID mandates. Nonprofit chamber organizations experienced the same government-mandated restrictions as for-profits, therefore they may seek ERC if they qualify.
Aside from ERC directly benefiting the chamber by helping its financial situation, Strategic Tax Planning can further assist your chamber. We have partnered with numerous chambers in the United States, including Washington state, Maryland, Virginia, and New York to not only help them claim ERC individually but also provide services to their members’ businesses when applicable.
We have helped several businesses from chambers including restaurants, retail stores, fun centers, art galleries, theaters, medical/dental offices, cosmetics/beauty shops, and even recovery start-up businesses that were opened after February 15, 2020. Strategic Tax Planning appreciates any opportunity to assist business owners with determining their ERC eligibility.
Business owners who have already filed for Employee Retention Credit are probably wondering when they can expect to receive the tax credit. With such a large number of businesses being affected by the pandemic, the IRS has a high volume of applications to process. Every case is different and will have a unique timeline. Your refund could be processed in about 8 months, although it may take longer.
If you wish to check the status of your refund, you may call the IRS, or use the “Where’s My Refund?” feature on the IRS website.
For Chambers of Commerce, 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. Submitting an ERC claim with 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 chamber, 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.
If you are part of a chamber and wonder if it may be eligible for ERC, reach out to Strategic Tax Planning for a free consultation with a licensed CPA. You can call us today at (202) 455-6010 or submit your information in our contact form, and we will call you.