Here is what they had to say:
How would you sum up 2022?
“Excitement” is a sentiment echoed by all three MD’s. “2022 has been a year of tremendous growth. Sagemont Tax has helped clients apply for over $500 million in Employee Retention Credits – we’ve helped friends, family, and small businesses all over the country.” said Burns. Following that, Budzik added that it was a “year beyond anyone’s expectations”, and Morabito continues that “2022 was an exciting year as we took Sagemont Tax from a start-up company to one of the most prominent companies in the ERC space. The best part of 2022 was surprising business owners with ERC eligibility in instances in which eligibility was uncertain to them, and presenting large credits to business owners that thought they might only be eligible for a small credit.”
Taking a look back on this past year, is there anything you would have done different?
All three agreed that there was not much they would have done differently, and plan on using their experience and teachings from the past year to bring success and ERC credits to even more eligible clients in 2023.
Let’s take a look back even further to 2021. How would you compare the overall reputation of the Employee Retention Credit (awareness, knowledge, reputation, etc.) then versus now?
Morabito, Burns, and Budzik share the idea that 2021 was a year where very little was known about the ERC. They are pleased with how much more is known about it in 2022, but agree that a lot of misinformation on the topic still exists.
Speaking of then versus now, it’s been pretty hard to miss the recent explosion of companies claiming to provide ERC services. What are your thoughts about the recent growth in Sagemont Tax competitors and what does the future look like for these “ERC Mills” in 2023?
As this is such a prominent and important topic, this is what each of the MD’s had to say:
Burns: “There is certainly going to be a reckoning for some of these ERC mills the same way there was a reckoning with those who took advantage of PPP funding. With inflation high and the economy contracting, the need for government funding is still very real and this funding should be going to businesses in need, and I think the IRS is not going to take malfeasance lightly.”
Budzik: “It’s unfortunate to see so many unequipped companies trying to make a money grab, while providing substandard (and flat-out unsupportable) services, shedding an unfavorable light on the ERC in general and tarnishing the appearance of the actual well-suited providers. As potential clients become more educated on what to look for when choosing a provider, I see these ERC Mills disappearing and leaving their clients hanging to deal with any potential IRS issues.”
Morabito: “I don’t like to speak ill of competitors. I have seen the work product of some of our competitors and I am concerned that the competitors are asking the clients to tell the competitors whether the clients are eligible instead of the competitors DETERMINING whether their clients are eligible. If the competitors are getting the eligibility test wrong (or not conducting this analysis at all), their client may have to return the credit. My other concern is that, if the competitors are getting the eligibility test wrong (or not conducting this analysis at all), I have doubts about whether their clients would want the competitors to represent them in the event of an audit.”
Think fast! Name the top 3 accomplishments of 2022 for Sagemont Tax?
All three MD’s responded the same way, saying that the top 3 accomplishments for Sagemont Tax were:
The incredible amounts of credits found for clients.
Hiring amazing talent and cultivating a strong, well-rounded team of ERC professionals while maintaining a healthy and fun work environment.
Educating business owners across the U.S. about the ERC and this historic benefit that helps so many.
As we approach the end of 2022 and close out Sagemont Tax’s 2nd year, what would be your two biggest takeaways, from a business perspective, as you enter 2023?
Morabito, Budzik, and Burns all agree that there is limitless potential and opportunity heading into Sagemont Tax’s third year in business. It is all about expansion, and leaving no stone unturned as the ERC opportunity doesn’t expire until 2025!
Finally, as far as personal accomplishments, we would like to take a moment to congratulate each MD for their meaningful moments of 2022:
-Max Burns took the leap of leaving corporate America, and moved from New York to Florida to join Sagemont Tax.
-JJ Budzik, JD proudly became a father for the second time, and also made the move of leaving the corporate world to further the success of Sagemont Tax.
-Kyle Morabito was able to watch his son grow during his first year of life, all while contributing to the success of the firm and presenting so many large credits to small businesses nationwide!
We wish all of you continued success, personally and professionally, into 2023 and beyond!