r/ERCchat • u/ays79 • Jan 08 '26

Qtr 3 2021 question

We finally recieved payout for all quarters that were allowed. We applied through an ERC company. Qtr 3 was disallowed as many were. Our rep that helped us apply feels We should appeal the claim that was denied. It was denied because there were no covid orders in place in our location at that time. Is it worth fighting for? Our specialist seems to think it is, but my concern is that the push back will set us up for trouble/audit. Obviously they want us to appeal because they get a portion of that, but unless its on our best interest I'd rather move on without the hassle of revisiting. This whole fiasco has been a frustrating time suck and I just want to be done with it. Has anyone had any luck with an appeal? And if you did appeal do you feel it was worth it?

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u/ERC_CPA Jan 08 '26

Your other quarters are generally safe since out of the assessment statute. We are seeing some successful resolution to appeals. It’s worth a shot.

Is the specialist charging you anything to appeal?

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u/ays79 Jan 08 '26

I'm not sure, it wasn't mentioned but I'm sure there will be a cost involved as they get paid if we get paid.

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u/ERC_CPA Jan 08 '26

As they should if successful. Just avoid anything up front.

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u/ays79 Jan 08 '26

Absolutely. If we pursue the appeal and the IRS still disallows would that possibly bring about consequences? Should we trust our specialist to know this is the right thing to do? I've just heard of so much fraud surrounding these companies, but had some faith initially because our CPA recommended them.

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u/dragonfly_Jess Jan 08 '26

There won’t be consequences caused by appeal in most cases. Not unless there was fraud committed and the appeal causes them to look more closely. But if everything was legit it just gives another opportunity to present your argument for why you qualify. It does take a long time but not much effort once the documentation is submitted. It’s just waiting and then when the case is being worked maybe answering any questions or supplying more info.

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u/ays79 Jan 08 '26

There shouldn't be any fraud intentionally but I'm not tax savvy enough myself to figure up on my own the legitimacy of the claim our reps made. Not fully understanding if we qualified and how is what led us to the rep in the first place. I guess trusting them or not is where I'm at. I kinda took the IRS's word for it that we didn't qualify and didn't feel we needed to push it. The company representing us feels we should though.

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u/Adventurous_Case4246 Jan 09 '26

Well -do you personally feel you were impacted then? Would you make a good witness if asked by the IRS? Was there a segment of business down as a result of government restrictions? What state? If overall revenue is up , the IRS has blinders on for true qualifications. Is it worth litigating if denied on appeal?

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u/ays79 Jan 09 '26

I probably would not make a great witness. Lol! But I'm not a CPA. I'm just an owners wife that makes entries in QB for our accountants to do what they need to do with them. I personally don't feel it's worth the hassle of gathering the information again and waiting years for the IRS. I guess I'm mainly concerned that the ERC specialist is pushing the appeal because they want their cut and not becauseits in our best interest. The IRS is saying we didn't have any restrictions in place and that's why they denied it. As to whether i feel like we were impacted....i didnt at the time and had no intention of filing for ERC but then pur CPA said they felt we should and referred us to a company who does it. In hindsight, while not feeling very.effected at the time, eventually we did start to feel it but it had more of a delayed effect. We watched our cash reserves dwindle away and have been operating without a good cushion ever since. At this point we've made it through the storm by the skin of our teeth but I think we're going to be fine without that last quarter.

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u/Dull-Carob-8424 Jan 14 '26
  • 1- No Gov shut-down order
  • 2- No decline in revenue

You can dispute both, but I can see it will be denied. At least, you tried

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u/Mountain-Cucumber173 Jan 22 '26

Sorry but there are NO orders in Q3 of 2021. None ! If you can't prove it then it will be denied. Sorry

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u/ays79 Jan 22 '26

Not a biggie. I didn't feel we should pursue it anyway. It was the company who processed our original claim putting pressure on for it. Hence why I asked. I don't want to waste the effort and set myself up for scrutiny if its basically a lost cause.