Small- And Medium-Sized Businesses And Tax Exempts Are Missing Out On Billions

I’ve finally been able to travel and have had the opportunity to hear from CPA firms, small and medium business owners and tax-exempt organization managers around the country about their outlook for jobs and growth. 

Most of the news has been heartening as businesses and tax-exempts look to weather the economic storm caused by the pandemic. However, it has been jaw-dropping to see how many business firms (and often CPAs) as well as tax-exempt organizations are failing to take advantage of the Employee Retention Credit (“ERC”) – meant to help businesses and tax-exempt organizations keep the doors open and maintain jobs, or, even better, grow and expand (and create more jobs) during these tough economic times. 

The failure of business owners and tax-exempt managers to take advantage of the ERC is due to fundamental misunderstandings and confusion about the credit. Congress’ Joint Committee on Taxation (JCT) scored the ERC as an approximately…

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