Are you curious about the percentage of your Employee Retention Credit (ERC) refunds taken by Innovation Refunds? With a fee of 25%, they help in getting back substantial amounts from the IRS.
Our article will provide an extensive guide, revealing how their process works, and how it can benefit you. Dive into this informative journey to clarify all your doubts about Innovation Refunds!
Key Takeaways
- Innovation Refunds charges a 25% fee on the refund it procures on behalf of clients for the Employee Retention Credit (ERC).
- There are more cost – effective alternatives available, such as employing an ERC specialist or working with your personal tax professional.
- Innovation Refunds helps qualifying businesses access federal incentives and has a high level of trust and satisfaction among customers.
The Cost of Innovation Refunds
Innovation Refunds is a reputable service that helps small and medium-sized businesses (SMBs) acquire their due Employee Retention Credit (ERC). They have skilled CPAs and tax attorneys who professionally prepare claims for the ERC.
However, quality service does come with costs. Notably, Innovation Refunds charges a 25% fee on the refund it procures on behalf of clients.
This might sound steep but remember there are no upfront fees or obligations involved when engaging Innovation Refunds. This means they only get paid if you qualify for your ERC and receive your refund from the Internal Revenue Service (IRS).
The company takes pride in its ability to aid qualifying businesses, even those previously told they did not qualify for ERC. The wait time to receive an ERC refund varies but typically falls within 4-7 months after submitting a claim to IRS.
Considering this alongside other facts makes clear that while accessing these services comes at a cost, many find them to be of significant value.
More Cost-effective Alternatives
There are more cost-effective alternatives to using Innovation Refunds for claiming refunds.
ERC Specialists
ERC Specialists are professionals who specialize in the navigation and application of Employee Retention Credit (ERC) for businesses. This specific tax incentive was introduced to help businesses retain employees during the challenging times brought on by the COVID-19 pandemic.
The specialists, often part of teams at companies like Innovation Refunds, offer their expertise to assist small and medium-sized businesses claim significant tax refunds with a focus on ensuring maximum recovery.
Their services extend beyond mere consultation; they provide comprehensive evaluation of your business’s eligibility for ERC based on factors such as limitations in commerce, travel, or group meetings after March 2020 due to governmental orders, or experiencing a marked decline in revenue.
Many companies utilize these specialized services to ensure accurate filing and successful ERC refund claims without dedicating internal resources or spending additional out-of-pocket expenses engaging personal tax professionals.
Your Personal Tax Professional
Employing a personal tax professional could present an alternative to using Innovation Refunds, particularly if cost-effectiveness is paramount. A certified public accountant (CPA) or a tax attorney on your payroll can navigate the complex tax code and work out the refund you’re eligible for under governmental orders like the Employee Retention Credit (ERC).
While this option could incur costs upfront, it may pay dividends by claiming comprehensive refunds while circumventing Innovation Refunds’ 25% service fee. This approach also means your business maintains control over all aspects of the filing process such as form 941 filings and back taxes evaluations.
How Does Innovation Refunds Work?
Innovation Refunds works by assessing the eligibility of businesses for certain refund programs, such as the Employee Retention Credit (ERC), and preparing claims to be submitted to the IRS.
Qualifying Businesses March 13, 2020, to December 31, 2020
Qualifying businesses between March 13, 2020, and December 31, 2020, can benefit from Innovation Refunds services related to the Employee Retention Credit (ERC). The ERC is a refundable payroll tax credit established under the CARES Act to provide economic relief to small and medium businesses that retained employees during the COVID-19 pandemic. Both essential and non-essential businesses can qualify for the ERC, and a decline in revenue may not be a requirement. Eligible businesses may have experienced disruptions to their operations due to government orders for commerce, travel, or group meetings.
Qualifying Businesses January 1, 2021, to September 30, 2021
Qualifying businesses from January 1, 2021, to September 30, 2021, can also take advantage of the Employee Retention Credit (ERC). Here are the criteria for eligibility during this period:
- Businesses must have experienced a full or partial suspension of operations due to governmental orders limiting commerce, travel, or group meetings.
- Alternatively, businesses can qualify if they have experienced a significant decline in gross receipts compared to the same calendar quarter in 2019. A significant decline is defined as a reduction of at least 20%.
- For the first two quarters of 2021 (January-March and April-June), businesses can compare their gross receipts to the corresponding quarter in 2019. If they did not exist during that quarter, they can compare it to the same quarter in 2020.
- For the third quarter of 2021 (July – September), businesses can compare their gross receipts to the corresponding quarter in either 2019 or 2020.
Who Qualifies for Innovation Refunds?
To qualify for Innovation Refunds, businesses must have experienced a decline in gross receipts in 2020 or were subject to governmental orders that partially or fully suspended their business operations due to the COVID-19 pandemic.
Essential and non-essential businesses can both be eligible for this refund. Additionally, churches and nonprofit organizations may also qualify if they have non-clergy employees. The IRS estimates that around 70-80% of small and medium-sized businesses are eligible for the Employee Retention Credit (ERC), making it accessible to a wide range of companies seeking financial relief during these challenging times.
Benefits of Innovation Refunds
- Innovation Refunds helps small and medium – sized businesses (SMBs) access federal incentives for growth, expansion, and job creation.
- The company assists businesses in applying for and receiving benefits, providing them with growth capital and financial security.
- Innovation Refunds has a high level of trust and satisfaction among customers, with 95% of reviews being 5-star.
- The company is categorized as an Alternative Financial Service provider, offering specialized assistance in accessing tax incentives.
- Innovation Refunds has a dedicated team that provides excellent customer service and keeps clients informed throughout the process.
- The application process is straightforward and easy to understand, helping businesses navigate the complex landscape of tax incentives.
Downsides of Innovation Refunds
- Innovation Refunds charges a 25% fee for their services, which may be seen as a downside for some individuals.
- Due to the backlog of amended filings, there may be an extended wait time before receiving refunds, which can be perceived as a downside for those expecting a quick refund.
- The time it takes to receive the refund can vary, but typically clients receive their first check in 4-7 months after submitting a claim to the IRS, which can be a downside for individuals seeking a quicker refund.
Steps to Apply for Innovation Refunds
To apply for an Innovation Refund, follow these steps:
- Gather your payroll records and tax documents from the qualifying period (March 13, 2020, to December 31, 2020, or January 1, 2021, to September 30, 2021).
- Ensure that you meet the eligibility requirements for Innovation Refunds based on your business size and gross receipts during the qualifying period.
- Consult with a certified public accountant (CPA) or tax attorney to assess your qualification and potential refund amount.
- Submit Form 941 filings for the relevant quarters during the qualifying period.
- Engage with Innovation Refunds’ professional CPAs or tax attorneys to evaluate your eligibility and calculate your potential refund.
- Work with Innovation Refunds to prepare and submit your claim to the Internal Revenue Service (IRS).
- Provide any additional documentation or information requested by the IRS during their review process.
- Keep communication channels open with Innovation Refunds and respond promptly to any inquiries or requests from both the company and the IRS.
Reviews of Innovation Refunds
Customers of Innovation Refunds have had both positive and negative experiences with the company. Read on to learn more about their firsthand accounts and determine if this service is right for you.
Positive Experiences
Clients of Innovation Refunds have had overwhelmingly positive experiences when working with the company. They have praised the professionalism and expertise of their team, consisting of certified CPAs and tax attorneys who are experienced in qualifying, substantiating, calculating, and claiming employee retention credit (ERC) refunds.
These professionals have helped over 6,000 businesses claim over $450 million in tax refunds. Clients have been pleasantly surprised to receive substantial refunds even if they were previously told they did not qualify.
With a typical gross refund amount of around $22,000 per employee as of March 2023, businesses can greatly benefit from Innovation Refunds’ services without needing to engage their own tax professionals or incur out-of-pocket expenses.
Negative Experiences
Some taxpayers have had negative experiences with Innovation Refunds. There have been reports of extended wait times before receiving refunds, due to the backlog of amended filings.
Additionally, some clients have expressed dissatisfaction with the 25% fee charged by Innovation Refunds for their services. While Innovation Refunds has helped many businesses claim substantial refunds, it’s important to consider these potential downsides before deciding to work with them.
It is recommended that individuals thoroughly research and consider alternative options before proceeding with any refund service provider.
Conclusion
In conclusion, Innovation Refunds charges a 25% fee for their services. While this may seem high to some, their expertise in navigating the complex tax code and obtaining substantial refunds for clients makes it a worthwhile investment for many small and medium businesses.
The convenience and peace of mind provided by Innovation Refunds outweighs the percentage they take from your refund.
FAQs
1. What percentage of my refund does Innovation Refunds take?
Innovation Refunds takes a percentage fee based on the amount of your refund. The specific percentage may vary depending on the individual circumstances and services provided.
2. How is the percentage fee determined by Innovation Refunds?
The exact percentage fee charged by Innovation Refunds is typically outlined in their terms and conditions or contract. It may be based on factors such as the complexity of your case, the amount of work required, and any additional services provided.
3. Are there any additional fees or charges apart from the percentage taken by Innovation Refunds?
It is important to review all agreements and contracts with Innovation Refunds to understand if there are any additional fees or charges beyond the pre-determined percentage taken from your refund. Some companies may have miscellaneous fees for administrative costs or other services rendered.
4. Can I negotiate the percentage fee with Innovation Refunds?
It may be possible to negotiate the percentage fee with Innovation Refunds depending on your specific situation and circumstances. However, it’s important to remember that negotiation outcomes can vary, and it’s advisable to discuss this directly with their representatives before entering into any agreement.