Prosthodontists, chiropractors, plastic surgeons, and others are often eligible if a suspension of operations prevented you from performing elective procedures.
During the entire COVID-19 pandemic, the medical industry was arguably the most heavily affected industry. General practitioners, pediatricians, dentists, veterinarians, and all other types of doctors and medical businesses had to deal with waiting room capacity limitations, virtual visits or even had to shut down certain elective procedures, among many other things. Thankfully for these medical establishments and businesses, many may still be eligible to receive the Employee Retention Credit (ERC), part of the 2020 CARES Act. ERC can provide up to $26,000 per employee for already paid wages, providing some financial relief after the stressful times your business experienced.
If you have a medical business and wish to speak with a licensed Certified Public Accountant (CPA) about your ERC eligibility, reach out to Strategic Tax Planning. You can call us today for a free consultation at (202) 455-6010 or fill out this contact form, and we will reach out to you.
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:
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.
If you are a business owner within the medical industry 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 this contact form, and we will call you.