Case Studies

Client

Multi-unit Crumbl franchise owner (Midwest)

The Challenge

The client had been working with a previous CPA to prepare their Crumbl franchise tax returns, K-1s, and other related business filings. However, the prior CPA was not aware that when an employer pays employment taxes on employee tips, the business may be eligible to claim a FICA Tip Credit equal to 7.65% of taxable tips.

As a result, this credit had gone unclaimed for multiple years.

When the client’s CPA retired, they transitioned their accounts to Certus Accounting & Tax Services.

Our Approach

During Certus’ annual tax strategy meeting, our team identified that the client’s Crumbl locations qualified for a previously unclaimed tip-related tax credit. Because this was uncovered through proactive planning we were able to take timely action.

Our team:

• Identified the missed tax credit opportunity

• Coordinated and reviewed payroll and tax records

• Verified eligibility for prior-year credits

• Confirmed the credits could still be claimed retroactively

By addressing this early, we ensured the opportunity was not lost due to timing or filing limitations.

The Result

As a result of this review, the client will receive over $20,000 in tax credits this year.

These credits:

• Directly offset personal income tax liability

• Improve overall cash flow

• Ensure future credits are captured correctly

The Takeaway

This case demonstrates the value of working with a CPA firm that understands franchise-specific and food-service tax strategies.

Proactive tax planning and industry knowledge can uncover substantial savings that many business owners don’t realize they qualify for.