The Latest From Sagemont Tax’s Managing Directors; JJ Budzik, JD, Maxwell Burns, and Kyle Morabito

August 10, 2023  |  2 min read

The latest trending questions answered by Sagemont Tax’s Managing Directors; JJ Budzik, JD, Maxwell Burns, and Kyle Morabito.

Does the debt ceiling being passed affect the Employee Retention Credit program?

According to all three Managing Directors, the short answer is NO.

Budzik goes into detail explaining: “Fortunately, the rescission of certain COVID-19 funding in connection with the debt ceiling suspension being passed does not have any impact on the ERC (as funds were not specifically appropriated for the ERC in the now rescinded portions of the legislation).”

What are the current processing times for tax credits from the IRS?

In a broad scope, the processing time is approximately 4-6 months from the filing date. To break it down further, Burns notes that credits under $250k per quarter are generally processed earlier, within a 3-5 month period. The maximum amount of time for credits over this is about 8 months.

Are there any industries you see not benefitting from the ERC as much as they could be?

All Manager Directors agree that nonprofit organizations are not benefitting as much from the ERC as they could – and should – be.

Morabito explains, “Many nonprofits do not know that they may have eligibility under the partial suspension test. Even though their revenue (i.e., funding sources) did not suffer, they may be eligible for the ERC if their operations were restricted by COVID-19 executive orders.”

We are over halfway through the year! What are some professional and/or personal accomplishments you are proud of in 2023?

JJ Budzik, JD: “Another baby girl on the way!” Congratulations, Jeff!

Maxwell Burns: “We had a successful presentation at the National Restaurant Association conference in Chicago and have been attending conferences all over the country. Despite all of the negative press out there on ERC, we have managed to get good clients the money they deserve!”

Kyle Morabito: “I am proud of the legwork that Sagemont Tax employees have completed in attending conferences to speak to businesses face-to-face about their ERC eligibility.”

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