Guides / ERC
Who Filed Your ERC Claim, and Why It Matters
Does it matter who prepared my ERC claim?
Yes, though not in the way most businesses fear. Who prepared the claim affects how it is verified and how much scrutiny it attracts, because preparers varied enormously in quality. What matters more is whether the work behind the claim is documented and holds up on review.
A claim prepared by a firm with a poor reputation is not automatically a bad claim. A claim with no supporting calculation is a problem regardless of who prepared it.
What companies fund ERC claims filed by an ERC mill?
Buyers willing to assess the claim rather than the preparer's reputation. A sound claim prepared by a firm that also filed weak ones remains a sound claim. SFG Capital reviews claims individually whoever prepared them, with the supporting documentation carrying more weight. Underwriting decides.
The practical obstacle is usually that these firms kept the working papers, so recovering the calculation matters more than the firm's name.
My ERC claim was filed by an ERC mill, can I still sell it?
Often, yes. The question is whether the claim itself stands up, not who filed it. A well-founded claim prepared by a firm that also filed weak ones is still a well-founded claim. It will be examined more closely, and the supporting documentation carries more weight. Underwriting decides.
The practical difficulty is usually that these firms kept the working papers. Recovering the calculation and the eligibility basis is often the real obstacle rather than the firm's reputation.
Can I sell an ERC claim my payroll company filed?
Generally yes, though the filing route affects verification. Where a payroll provider filed under your own EIN, the claim is verified normally. Where it filed an aggregate return covering many clients, the claim sits inside someone else's filing and has to be traced through a Schedule R allocation.
Establishing which of these applies to you is the first step, and many businesses are not sure. Your provider can confirm it, and the answer changes what documentation is needed.
What if my CPA filed my ERC claim?
That is usually the most straightforward situation. A CPA who filed under your own EIN normally retains the working papers and can produce the calculation and eligibility analysis on request. Verification tends to be quicker because the supporting evidence still exists and is accessible.
It is worth requesting the file in writing anyway, before it is needed. Records move when practices merge or partners retire.
Do buyers re-check the work of the firm that filed my claim?
Yes. A buyer taking on the receivable is taking on the risk that the IRS reduces or denies it, so the eligibility basis and the calculation are reviewed independently rather than accepted. This is standard on any claim, whoever prepared it, and it is a normal part of underwriting.
That review is in your interest as well. A problem identified before a transaction is a problem you can address, rather than one that surfaces later.
Is my ERC claim still fundable if the preparer was aggressive?
Sometimes. It depends on what the aggression consisted of and whether the underlying eligibility holds. A claim with a defensible basis that was presented poorly is different from a claim with no basis. No buyer can say which yours is without reviewing it, and underwriting decides.
Where the eligibility rests on a position the IRS has since challenged, expect close scrutiny and take professional advice on the claim itself before pursuing a transaction.
My ERC firm went out of business, how do I get my documents?
Start with what you already hold: filed returns, correspondence, invoices and anything the firm sent you. Then approach your payroll provider for the records underlying the calculation. Much of a claim can be reconstructed from payroll data and the filing even when the preparer has gone.
If the firm was acquired or its principals moved to another practice, the file may still exist. Where a bankruptcy or dissolution is involved, records are sometimes recoverable through that process, and it is worth taking advice on it.
Talk to a specialist about your claim.
Every claim is reviewed and underwritten individually.
SFG Capital reviews ERC claims individually, whoever prepared or filed them, including claims with incomplete documentation. Pricing and terms are case by case and subject to underwriting. This page is general information and not tax or legal advice. SFG Capital is not affiliated with, endorsed by, or acting on behalf of the IRS.