Author: Meghan Phillips

The Internal Revenue Service (IRS) has announced a moratorium on new claims related to the pandemic-era Employee Retention Credit (ERC, also known as Employee Retention Tax Credit).  The pause on new claims goes into effect immediately and will last until at least 2024.  

When claimed properly, the ERC is a refundable tax credit designed to help employers who continued to pay their employees while their businesses were fully or partially suspended during the COVID-19 pandemic.  

The move was prompted by growing concerns over fraud and abuse in the program resulting from scammers aggressively marketing the credit to honest small businesses. Currently, there are hundreds of criminal cases being investigated, with thousands more claims waiting to be audited.  

What Is Next for Your ERC Claim?  

Previously submitted claims will still be reviewed and paid out, however, at a much slower rate. Expected processing times will double from 90 days to 180 days, with the potential for an even longer timeline if the IRS must request additional documentation to substantiate the claim.  

If you have submitted or received an ERC claim, here is what you should do next:  

• If you have previously submitted a claim, it will still be processed, but you should be prepared for much longer wait times and increased scrutiny.  
• If you have a pending claim, you are strongly encouraged to review it with a trusted tax advisor to confirm its validity and withdraw any claims that are determined to have been submitted improperly to protect yourself against potential repercussions such as fees and interest.  
• If you have previously received an ERC in error, there will be guidance forthcoming on how to repay improper claims. There is a settlement program being developed to help businesses who applied in good faith to avoid penalties. More information is expected to be forthcoming this fall.  

Protect Your Business Against Fraud 

In its release, the IRS emphasized its priority of protecting honest businesses and taxpayers from those seeking to take advantage.  

The IRS has also shared a list of warning signs that businesses should watch out for to protect themselves against aggressive marketers.  

Conclusion 

Businesses are encouraged to review their claims now to avoid negative impacts, including fines and fees. IRS commissioner Danny Werfel advised seeking the guidance of reputable advisors, saying, “businesses should seek out a trusted tax professional who actually understands the complex ERC rules, not a promoter or marketer hustling to get a hefty contingency fee.”  

The tax professionals at Bowman & Company have the knowledge to help protect your business, please reach out today with any questions related to your ERC claims.   

Sources: 

1. https://www.irs.gov/newsroom/to-protect-taxpayers-from-scams-irs-orders-immediate-stop-to-new-employee-retention-credit-processing-amid-surge-of-questionable-claims-concerns-from-tax-pros 

2. https://www.irs.gov/newsroom/red-flags-for-employee-retention-credit-claims-irs-reminds-businesses-to-watch-out-for-warning-signs-of-aggressive-promotion-that-can-mislead-people-into-making-improper-erc-claims  

Bowman & Company is excited to announce the promotions of Shailee Martinez, Victor Hurtado, and Rajdeep Ubhi. They will be taking on new roles and responsibilities as Senior Accountants. 

Shailee works with a variety of clients providing tax, audit, and accounting services. She enjoys contributing to multiple teams and having a broad skill set, and one of her favorite recent accomplishments was presenting at the Firm’s tax summer training. Shailee loves working with her peers and was excited to become a valued member of the Client Accounting Advisory Services (CAAS) team. She stays motivated by remembering, “if it feels too easy, then do more. Your God given gifts become activated when you’re uncomfortable.” In her new role, Shailee looks forward to helping and encouraging new staff. 

Victor began his career in public accounting as an intern with Bowman. As a member of the audit team, he has excelled in his focus area of audit, working primarily with clients in the low-income housing and non-profit sectors, as well as providing employee benefit audits. Victor enjoys the fun activities sponsored by the Firm and is excited to get to know his peers and coworkers even better! He values working with a helpful resourceful team, and in his new role he is looking forward to continuing in his growth and being a knowledgeable resource for others.  

Rajdeep is a valuable member of the Boman tax team. His motto is “Another day, another chance.” Never one to shy away from a challenge, Raj takes every opportunity to learn and expand his skills.  He enjoys working at Bowman and especially appreciates connecting with his coworkers through team-building activities like Fun Friday. In his new role, Raj is looking forward to growing in his skill and career.   

Congratulations Shailee, Victor, and Rajdeep! 

Bowman & Company is happy to announce the promotions of Allison Vela, Emily Terry, CPA, Evelyn Garcia, Angelica Sanchez, CPA, Natalie Tallerico, CPA, Sydney Duspiva, CPA, and Martha Elizondo, CPA. These seven professionals will take on new their new roles as Supervisors.  

Allison is a member of the tax team, where her expertise and professionalism is a true asset to her clients and coworkers. She remembers the challenge of navigating through tax season with a newborn and appreciates Bowman’s commitment to providing work-life balance to their employees. In this new role, Allison is looking forward to pursuing more learning opportunities, strengthening her technical skills, and mentoring others. Her motto is “Every day is a chance to get better.”  Outside of tax season, you might find Allison at one of her two favorite places, Disneyland or Hawaii. 

Emily specializes in audit services with a specific focus area on single and governmental audits. She is appreciated by her team members and clients for providing exceptional service. Thus far, the most challenging experience of her career was obtaining her CPA license, but she is grateful to work with “the best group of people” who support her as she grows as a professional. In her new role, Emily is most looking forward to new learning opportunities and strengthening her skill in single and governmental audits. 

Evelyn is a valued member of the Bowman team, working with both the tax and accounting departments. She is grateful to be part of a supportive team that has been instrumental in helping her excel in her skills. While one of her biggest professional challenges has been finding work-life balance, she is so grateful that the Firm is committed to helping her find the right approach. Evelyn is most looking forward to taking on new challenges in her new role. Her motto is “No one achieves anything alone. We need a team!”  

Angelica is a multifaceted professional who works with both tax and audit teams. In her time with Bowman, Angelica has most appreciated getting to work with kindhearted, affectionate, and smart coworkers. One of her more challenging times was passing her CPA and obtaining her license and is proud of her accomplishment. In her new role as Supervisor, Angelica is looking forward to inspiring and motivating her team to achieve their goals. 

Natalie specializes in providing tax preparation and compliance services. She loves to rise to the occasion and considers one of her biggest professional challenges to have been studying for her last CPA exam during busy season.  However, she overcame what seemed to be impossible with the help of her amazing team supporting her journey through communicating and coordinating with her managers. Her favorite quote is “Eat a live frog first thing every morning and nothing worse will happen to you the rest of the day” – Mark Twain. In her new role, Natalie is looking forward to increasing her technical skills and helping others along the way. 

Sydney is a valued member of Bowman’s audit team.  A hard-working individual, she enjoys being continuously involved with new audits and growing her skills. After focusing exclusively on auditing for many years, Sydney has taken on the challenge of learning a different area of expertise. In her new role, Sydney is most looking forward to helping newer staff navigate through their learning experience.  

Martha is a member of the audit department specializing in not-for-profit and nonpublic entities. Martha enjoys the ever-changing aspect of public accounting. While it is challenging at times, she is motivated by the positive impact she makes on her clients. Martha is grateful for the camaraderie and collaboration within Bowman and excited to contribute to the development of new staff. Outside of work, she enjoys running, reading and spending time with her family. 

Congratulations Allison, Emily, Evelyn, Angelica, Natalie, Sydney, and Martha! 

Bowman & Company is pleased to announce the promotion of Grayson Moyer, CPA. Grayson takes on new responsibilities as a Senior Manager.   

Grayson is a motivated and hardworking member of the Bowman team with over 13 years of accounting industry experience. He currently specializes in providing audit services for clients in the in the low-income housing, non-profit (private and Governmental), and for-profit industries. In recent years, amendments to GAAP have challenged him in his work with clients and his own research, but being challenged in his work has only served to motivate him. Grayson’s motto is, “If it wasn’t hard, everyone would do it. The hard… is what makes it great.” 

Grayson enjoys participating in company events like the holiday party and Fun Fridays. In his new role, he’s looking forward to mentoring new staff and being a knowledgeable resource for his colleagues and clients.  

CONGRATULATIONS, GRAYSON! 

Bowman & Company is pleased to announce the promotion of Lisa Dominguez, CPA. Lisa takes on new responsibilities as a Senior Manager. 

Lisa has 18 years of accounting industry experience and brings a great deal of expertise to the Bowman team. As a Senior Manager in our Audit department, she specializes in accounting, audit, and tax services for affordable housing projects, not-for-profit, and nonpublic entities. Recently, her biggest challenge was passing the CPA exam after several years of working toward that goal, and her hard work and determination can be summed up in her favorite quote from Benjamin Franklin: “Don’t put off until tomorrow what you can do today.” 

One of Lisa’s fondest Bowman memories was when the Firm traveled to San Diego, toured the Chargers training facility, and attended a game. She is looking forward to participating on the Senior Management team and contributing to Firm improvements in her new role. 

CONGRATULATIONS, LISA! 

Bowman & Company, LLP (Bowman) is excited to announce that the firm was recognized nationally as one of the 2023 “Best Accounting Firms to Work for” by Accounting Today.  

“This incredible honor truly blows us away,” said Edward W. Hernandez, Bowman’s Chief Human Resources Officer. “At Bowman & Company, we strive to provide a world-class workplace for our team members. This recognition validates our efforts to fully meet our employees’ needs, helping them enjoy satisfying careers and balanced lives.”  

“We understand that the success of our firm is tied directly to the success of our people,” said Jeanne Russick, CPA, Partner in charge of personnel at Bowman. “When a new member joins our team, we make a commitment to helping them meet their full potential because we know that the best way to retain top talent is to be a place that talented professionals want to stay.”  

“Furthermore,” Russick added, “we are thrilled to have received this award for the second year in a row. We are invested in creating an excellent company culture for the long term. Earning recognition for a consecutive year shows that, as an organization, we are fully committed to being the best possible workplace for our employees.” 

Each year, Accounting Today partners with the Best Companies Group to identify accounting businesses that have excelled in creating quality workplaces for employees. The survey and awards program is designed to identify, recognize, and honor the best employers in the accounting industry. The 100 firms named to the list benefit the industry’s economy, workforce, and businesses. For more information, visit accountingtoday.com.  

Bowman & Company is pleased to announce the addition of Andrew Tomaschko to the firm. Andrew joins the team as a Manager and will be working remotely from his home office in Maryland.  

Andrew brings over 10 years of experience in Public Accounting to the Bowman team. He specializes in audit accounting with specific experience in HUD and low-income housing, non-profit organizations, charter schools, and SEC broker deals. In addition to his technical expertise, Andrew brings over six years’ worth of leadership experience to the firm. 

A licensed CPA in the State of Maryland, Andrew is a graduate of the University of Maryland, College Park where he was a dual major, earning both a Bachelor of Science in Accounting and a Bachelor of Science in Finance.  

Prior to Joining Bowman, Andrew worked as an Audit Manager with Jones, Maresca and McElwaney, P.A. in Washington D.C.  

Welcome to Bowman & Company, Andrew! 

Bowman & Company is excited to share that Alliott Global Alliance (AGA) recently announced a new series of offerings—AGA Global Solutions, which are “designed to support you when expanding to and operating in any jurisdiction across the world.”  

Through our firm’s membership in AGA, your Bowman partner can coordinate tax & accounting, payroll, legal, and company secretarial services on an international level. Our team will be able to tackle much larger projects than other local or regional firms due to our expansive network of independent accounting, legal, and specialty advisory firms across the globe. 

Bowman has been a member of Alliott Global Alliance since 2009. Founded in 1979, Alliott Global Alliance (AGA) has since spread to include 260 member firms in 98 countries. The international alliance of independent, law, accounting, and specialist advisory firms, works across the world as one. Each of its members shares a common goal: to learn and share knowledge, resources, and opportunities to make the world smaller and their businesses stronger. 

Reach out to your Bowman & Company partner today to learn how we can put AGA Global Solutions to work for your business.