What was the total amount due from IRS for All Team as of December 31, 2023?
All_Team Franchise · 2025 FDDAnswer from 2025 FDD Document
| 2024 | 2023 | |
|---|---|---|
| CURRENT ASSETS | ||
| Cash | $ 629,272 | $ 1,015,879 |
| Accounts receivable-trade, pledged, | 589,672 | 1,075,420 |
| less credit losses of $63,416 and $57,416, respectively | ||
| Advances to related parties | 1,526,254 | 1,091,453 |
| Prepaid expenses | 81,663 | 20,368 |
| Due from IRS | - | 49,780 |
| Total Current Assets | 2,826,861 | 3,252,900 |
NOTE 12 – GAIN CONTINGENCY – EMPLOYEE RETENSION CREDIT
The Company applied for financial assistance through employee retention credits under the "Coronavirus Aid, Relief, and Economic Security Act" (the "CARES ACT") in the amount of $174,999. The employee retention credits were established in March 2020 to help businesses retain employees. If certain qualifications were met, businesses could receive quarterly refundable payroll tax credits. The Company met the qualifications and received $49,780 in 2024 with the remaining credits pending approval. For the years ended December 31, 2024 and 2023
Source: Item 21 — FINANCIAL STATEMENTS (FDD page 33)
What This Means (2025 FDD)
According to All Team's 2025 Franchise Disclosure Document, as of December 31, 2023, the amount due from the IRS was $49,780. This figure is listed as an asset on All Team's balance sheet for that year. This indicates that All Team expected to receive this amount from the IRS.
The 'Due from IRS' line item falls under current assets, meaning these are assets expected to be converted to cash or used up within one year. For a prospective franchisee, this detail provides a snapshot of All Team's financial health and its interactions with tax authorities. It shows that All Team was anticipating a refund or credit from the IRS at that time.
Additionally, Note 12 within Item 21 of All Team's 2025 FDD clarifies that the company applied for financial assistance through employee retention credits under the CARES Act, totaling $174,999. All Team received $49,780 in 2024, with the remaining credits pending approval. This explains the 'Due from IRS' entry on the balance sheet, linking it to these employee retention credits.