1. The deliverables produced by Redwood Tax Specialists are IRS audit-ready.
2. ERTC deliverables are prepared by a licensed North Carolina public accounting firm that has been in existence for decades and specializes in tax reduction strategies. Redwood’s managing partner, Scott Fedyshyn, is a highly credentialed and respected tax reduction expert with Big Four accounting firm experience. He has delivered over $1 billion worth of tax reduction strategies to clients nationwide. Scott is the CPA that other CPAs, CFOs, tax attorneys, etc. rely on for their tax reduction strategies.
In contrast, many ERTC providers consist of newly minted, “pop-up” consulting LLCs. These providers are not CPA firms, use unlicensed practitioners, have zero experience in tax reduction strategies, or have never dealt with the IRS. Once the ERTC program ends, these pop-up companies most likely will not be around in 2-5 years when an IRS audit may occur.
3. Redwood’s custom done-for-you ERTC model has built-in logic to qualify wages using data that Redwood collects from your business client. Other providers require the CPA to gather the data, do all the analysis to qualify a business for ERTC benefits, and then you send the provider YOUR conclusions based on YOUR own analysis. Our model is streamlined to shave hours off the data collection process.
4. We have an exclusive relationship with a highly qualified third party data collection firm that will collect all the relevant data for our extensive ERTC benefit analysis. This firm has been in business for 17 years and will provide non-disclosure agreements for your peace of mind. Other providers may require you to collect all of the raw data yourself. Redwood truly has a done-for-you ERTC model.
5. Redwood offers paycheck-by-paycheck classification of all wage categories, substantiation of all ERTC calculations, reconciliations to the penny, and maximization of both the ERTC and PPP loan forgiveness. Others use unsubstantiated shortcuts with aggregated data, which cannot be verified back to specific wages generating the tax credits, putting the credit at risk of disallowance and penalties.
6. Redwood supplies CPA-preferred deliverables with built-in risk management. Others provide limited reports that are not customizable, and more reports incur additional fees. Our approach is completely transparent, and we give you sample final deliverables upfront for you to review. All the data and reporting is completely customizable after the fact. Our deliverables ensure the taxpayer will avoid additional fees that could cost them thousands of dollars along with lost sleep, time, and stress.
7. For every $100,000 of PPP loans, there could be as much as $28,000 in ERTC credits permanently lost if PPP loan forgiveness is not done correctly. It is impossible to amend a PPP loan forgiveness application, so this could be a very costly and permanent loss of benefit for clients.
8. It is not just about the ERTC. There are regulations and limitations on what can be applied to PPP loan forgiveness. This can only be done correctly on a paycheck-by-paycheck model. Outside of Redwood, we have found no other provider that performs a double-check on PPP loan forgiveness. This can create a massive double penalty, because you may permanently lose both PPP loan forgiveness and ERTC credits.
9. Redwood provides a 100% guarantee there are no overlapping wages in the deliverables. That can only be accomplished with a paycheck-by-paycheck categorization, which most providers do not provide.
10. Redwood’s proprietary ERTC model and software is copyrighted which means CPAs are getting a product they can’t find anywhere else.
11. Redwood has no additional or hidden fees.
12. Redwood gives you access to ERTC trained and credentialed CPAs that guide you through the analysis of the ERTC and one-on-one access to the experts. Other providers rely on bulk call centers and junior staff with no ERTC knowledge, experience, or technical knowledge.
13. Redwood calculates the highly complex related party attribution rules for every client. Others do not even attempt this essential analysis.
14. For selected businesses, Redwood goes the extra mile to maximize the ERTC benefits by analyzing the effects of using different methods of accounting for business revenues. This can result in significant increases in ERTC benefits.
15. It’s always tempting to find the cheapest provider, but do the simple math. Redwood has clear standardized pricing, with high quality and supportable deliverables that are ready to be sent directly to the IRS. Redwood also takes the extra steps to get every dollar clients are entitled to.
16. We have amended dozens of prior-filed ERTC applications, which generated hundreds of thousands of extra tax credits that would have been lost forever. On average, these amended ERTC applications have resulted in about 12% additional tax benefits, which offsets the pricing for our high-quality work.
But there is more to consider.
Let’s assume there is a $100,000 ERTC benefit available and you used a discounted, inexperienced provider. If just 10% of the ERTC calculation is incorrect, it would result in a $10,000 disallowance, a $1,000 IRS 6656 penalty, $1,000 worth of interest for 2 years, and $2,000-$3,000 spent defending the audit. This effectively means there could easily be an additional “hidden cost” of up to 15% on the original ERTC calculated benefit.
In an audit, the IRS is not going to tell you about the missed 12% benefit you didn’t get. They are definitely going to get their 10% disallowance. So the missed benefit opportunity plus the disallowance, potential penalties, and interest costs could add up to 27% (12% + 15% = 27%). This 27% “hidden cost” does not include what the discounted, inexperienced provider charged the client originally to provide the ERTC documents. This puts Redwood’s fee in a better perspective for the value it provides to clients.