Frequently Asked Questions

 

What Are the Credits?


The Federal Government provides very generous tax credits called the Empowerment Zone Employment Credit (EZEC) and the Renewal Community Employment Credit (RCEC). The credits are only available to companies that have worksites located in federally designated areas – as determined by the U.S. Department of Housing and Urban Development (HUD) – and who hire any of their workforce from these designated areas.

What Does My Zone Look Like?

OKC_Empowerment_Zone for Oklahoma City

Why Must I Act Now?

If you don’t act now, your credit dollars earned in recent years will go unclaimed. Even though zone credit programs have ended as of 12/31/14, you can generate a refund check by amending your tax returns. Even employees who are no longer employed by your company will generate a credit for you provided they meet the specific tenure requirements.

How Much of a Credit Is It?

Up to $3,000 per Zone-community resident, per year. On average, a company with a $100,000 payroll will earn a $5,000 tax credit.

How Does My Company Use the Credits?

Generally an employer can use income tax credits as they choose subject to IRS guidelines on credit use. Refer to IRS Form 8844 and the General Instructions on how to claim your credit. These credits can be used to reduce your Alternate Minimum Tax.

What Does R. Jeffrey & Associates Do For Me?

We do the work for you.

R. Jeffrey & Associates (RJA) has helped Zone-located business owners secure more than $4,000,000 of Federal tax credits since 2002. Our clients include Zone-located McDonald’s Franchise owners, other franchisees, and business owners representing various industries.

Our work is done on contingency – there is no financial risk for you.

Here’s how it works.

We briefly discuss with you the process used to secure your tax refund check. A clear picture will be provided to you of how you receive your credit refund check and when.

We analyze your data and prepare the documents necessary to prove your earned tax credits and secure your refund checks. A complete report that notes each eligible worksite and each eligible employee is provided to you. We evaluate each employee against all IRS eligibility requirements.

We provide your accountants with these same documents and amended tax returns are submitted for the eligible tax years of 2012, 2013 and 2014.

How Soon Will I Receive My Tax Refund Check?

Your accountant can advise you how long it should take to receive the refund. Recent clients whose amended returns were submitted in March 2014 receive their refund check in September 2014.

What Do I Do Now?

Call Jeff Newcorn, CEO of R. Jeffrey & Associates. He will determine if you qualify for the credit. He also will provide you with preliminary estimates of your EZ credit or refund.

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