Before discovering Omega, six companies had informed Kyle that his business wouldn't meet the criteria for the ERC. See how Omega found a way to qualify him.
Six companies told Kyle his business wouldn’t qualify for ERC before he found Omega. Through Omega’s in-depth analysis of Kyle’s business disruptions caused by the pandemic, they found that he did in fact qualify.
“We had been approached by six other companies, either through mail or phone calls, or telemarketing, and all of them were trying to get us to look at the opportunity with the ERC credits. We jumped through those hoops only to find out that we didn’t qualify. A friend of mine had recommended Omega and we gave it one more try.”
Wineries can retroactively claim the ERC refund based on wages paid during the pandemic. The process involves filing an amended 941-X form within three years of the date of filing the original form for that quarter.
The ERC is calculated for every quarter a W-2 employee was retained. For 2020, wineries can receive up to $5,000 per employee; for 2021, wineries can receive up to $7,000 per employee per quarter for the first three quarters of 2021 (up to $21,000).
Omega conducted an impact analysis to determine the qualifying criteria for his winery. To qualify for the ERC, a winery must meet either one of the following criteria:
Kyle had obtained a PPP loan and his business thrived during the pandemic. For this reason, previous ERC providers informed him that he didn't meet the eligibility criteria. Many wineries, including Kyle's, pursued PPP loans to address immediate cash flow needs, unaware that they could also qualify for the ERC. Some winery owners are still unaware that their businesses may be eligible for the ERC, even if they received the PPP loan. Unlike the PPP loan, the ERC is a refund on previously paid payroll taxes, not a loan, allowing winery owners the freedom to utilize the credit as they wish. Omega enlightened Kyle about this significant distinction.
Omega's team extensively analyzed Kyle's winery business and confirmed its eligibility for the ERC tax credit. Following several meetings with Kyle and his accounting team, Omega submitted the ERC claim for his winery, completing the process within three weeks. Typically, the IRS takes six to nine months to process and refund the claim. However, in Kyle's situation, he received the refund via mail within seven months of filing the claim.
“Throughout the process with Omega, the requests for documents and stuff were very concise, and they did a very good job of letting us know why they needed things and how it is going to affect the process. I had a lot of legal questions about this program and what it does to my own taxes and those kinds of things. They had all those answers lined up. There are tons and tons of professionals in their organization, from attorneys to tax experts; and they’ve got it done for me. I have also recommended my wife’s customer to call Omega for her ERC.”
Feeling discouraged, Kyle had nearly abandoned hope for the ERC. Many winery owners are told that they do not qualify or they disqualify themselves based on online information. If you own a winery and seek a reliable opinion, Omega is ready to provide assistance, whether it's a first or even a second opinion.
The deadline to claim the ERC tax credit for the year 2020 is April 15, 2024. After this date, wineries can only claim ERC credits for the year 2021. It is crucial not to delay as you will lose the opportunity to claim for 2020. The final date to apply for an ERC refund in the 2021 tax year is April 15, 2025.
Filing for the Employee Retention Credit can be complicated, requiring thorough documentation and analysis. Many wineries choose to file independently or seek assistance from CPAs. However, it is essential to select a knowledgeable ERC specialist who can navigate the complexities of the credit. Omega has over 15 years of experience in filing government-based tax credits and has established partnerships with reputable organizations such as Stout, Horton Group, and Aspire CPA Group. Wineries that file the ERC with Omega receive documentation substantiating their ERC claim, providing added security should their claim be reviewed in the future.
At Omega, we handle every aspect of claiming your ERC tax credit. We handle eligibility determination, calculations, and provide documentation to substantiate your ERC claim. Let us handle the process for you and assist you in obtaining your ERC tax credit.