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Accounting advice for Employee Retention Credit (ERC) / Register for Webinars now
February 11, 2022
Webinar Title:  what's new in the 2022 updated contracts
When:  February 15, 2022, at 12:00PM Eastern time
Topic Details: most important updates in the 2022 contracts
Presented by: Ken Kirschenbaum, Esq.  Kirschenbaum & Kirschenbaum
Who should attend:  Company owners, CEOs, Managers, sales personnel
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Webinar Title:  why use Disclaimer Notice and join Concierge Program
When:  February 16, 2022, at 12:00PM Eastern time
Topic Details: when, how and why to use Disclaimer Notice /  why you should join Concierge Program
Presented by: Ken Kirschenbaum, Esq.  Kirschenbaum & Kirschenbaum
Who should attend:  Company owners, CEOs, Managers, sales personnel
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Webinar Title:  common legal issues in buy-sell deals
When:  February 22, 2022, at 12:00PM Eastern time
Topic Details: common issues to consider in smaller buy-sell transactions
Presented by: Jesse Kirschenbaum, Esq.     Kirschenbaum & Kirschenbaum
Who should attend:  Company owners, CEOs, CFOs
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Webinar Title: issues buying or selling alarm company and broker's roll
When: February 24, 2022, at 12:00 PM Eastern time
Topic Details: How to prepare for negotiations and what to expect
Presented by: Ron Davis and Kelly Bond of Davis Mergers & Acquisitions Group
Who should attend: Company owners, CEOs, CFOs
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Accounting advice for Employee Retention Credit (ERC)
          I am getting a lot of calls from Alarm Company owners about the Employee Retention Credit (ERC).  Many of the calls are generated from “consultants” that cold-call businesses offering to fill out the forms to claim the credit for a percentage (as much as 25%) of the credit.  The ERC was available for part of 2020 and the first three quarters of 2021.  It allows you to take a credit (dollar for dollar reduction) in payroll taxes of 50% of your quarterly payroll (up to $10,000 per employee) in 2020 and 70% in 2021.  For a company with ten employees making $20 an hour the credit could be as much as $280,000 for 2020 alone. 
          We [Reitman Consulting Group] have taken the credit for many of our clients but most were not eligible because to qualify, the company had to have a 50% drop in revenue for the 2020 quarter and a 70% drop per quarter (over 2019) in 2021.  Most alarm companies didn’t qualify. 
          The Tax Code allows for some exceptions but they are very limited.  Some companies have allowed these “consultants” to claim that they qualified due to obscure provisions of the rules.  I spoke with a representative for one of these firms (I could hear the boiler room noise in the background) and he told me that, even if the Taxpayer doesn’t necessarily qualify the likelihood of getting caught is minimal.  Don’t count on it.  I call this the Audit Lottery.  The IRS has announced that they believe that many of these “consultants” are committing fraud and have announced that simply using them to claim the credit, even rightfully, will most probably result in an audit.  If you wrongfully take the credit, and you are audited, the IRS is going to look at every line on your tax returns for the last three years.  If they don’t like what they see, they may take a peek at your personal returns.  If they see fraud they can go back as far as they want to.  You may end up with a disallowed credit in excess of $250,000, fines, penalties, interest and other costs.  Don’t count on the “consultants” to make good on your loss as who is to say that they won’t just fold up and leave town with their 25% commission. 
          If you haven’t discussed this with your tax pro, call them. If what they say doesn’t make sense, call us.  We can tell you very quickly (and for free) if you qualify.  We charge by the hour to file the forms.  The forms are complicated but you will be glad to know that we won’t charge you $50 grand.
 Mitch Reitman 
817-698-9999 XT 101
          You are in the alarm business.  Believe me you need Mitch in your corner.  Stop taking risks and call him, and not just for the free quick call.  Engage him as your accountant or your tax consultant.  Whatever he charges you will be worth it and you’ll save a lot more.

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Ken Kirschenbaum,Esq
Kirschenbaum & Kirschenbaum PC
Attorneys at Law
200 Garden City Plaza
Garden City, NY 11530
516 747 6700 x 301