Omega Funding Solutions: Promoter and Funder Under One Roof

The Employee Retention Credit had a timing problem, and the timing problem was a business opportunity. A business that filed an amended payroll-tax return in 2022 or 2023 might wait a year or more for the IRS to pay. After September 2023, when the IRS froze new claims entirely, the wait became open-ended. Omega Accounting Solutions had spent that period selling businesses on filing the claims. On November 1, 2022, it launched a second company to sell them the cash while they waited: Omega Funding Solutions.¹

Omega Accounting announced Omega Funding Solutions as its own "new division," and in the same breath called it a "third-party lender."¹ Those two descriptions point in opposite directions. A division is part of the same enterprise; a third-party lender is an arm's-length outsider. LinkedIn and business-data aggregator profiles list Zachary McEligot as Omega Funding Solutions' president; Omega Accounting founder Jay Woods announced the new division himself.² Same brand, and by the launch release's own word, the same company.

The advance, in numbers

Omega Funding Solutions offered a short-term loan secured by an expected government payment. The launch terms: advances of up to 65 percent loan-to-value against the anticipated ERC refund; no minimum or maximum loan amount; no upfront fees; approval usually within one day and closing within three; and a repayment structure that runs until the refund arrives and is retired by a balloon payment when it does. The company said it lent in 47 states, to Omega's own ERC clients and to businesses that had not yet filed or had "filed with other processors."¹ Later marketing described a 12-month bridge product at up to roughly 60 to 65 percent of the refund, and a separate "buyout" option in which Omega purchases the claim outright rather than lending against it.³ The interest rate is the number Omega does not put in its press releases; the launch material advertises the absence of upfront fees and leaves the cost of the money itself undisclosed.¹

Beside the wider ERC receivables market, that structure sits inside the normal band. ERC Advance Funding LLC's published terms describe advances up to 85 percent of the claim, illustrated with an example in which the borrower's discount ran to 15 percent, repayable if the IRS never pays. A filed contract in Clear Cove Opportunities Fund I v. Addiction Recovery Care, LLC (S.D.N.Y.) puts a purchaser's upfront price at about 82 percent, with the purchaser retaining half of any IRS interest, a 15 percent default rate, a personal guaranty, and an assigned collateral position. A companion contract in Angelica Capital Trust v. Addiction Recovery Care, LLC (S.D.N.Y.) uses a different structure: retainage, 85 percent of added IRS interest, an all-asset security interest, and an 18 percent default rate, with an advance closer to 67 percent of the expected credit. In each case the paperwork called the deal an outright purchase, not a loan. Icarus Fund marketed a straight buyout structure with no stated monthly interest and no upfront fee, an undisclosed discount rate standing in for both.⁴ Omega's up-to-65-percent advance sits below Clear Cove's roughly 82-percent rate and ERC Advance Funding's 85-percent rate. But the advance rate alone is not the price: Clear Cove's and Angelica's retained interest, default terms, and collateral show that a receivables deal's real cost can run well above its headline advance percentage.

A bigger claim pays the Omega group twice

The two Omega companies' incentives run in a circle. Omega Accounting decides whether a business qualifies for the ERC and files the claim. A bigger claim means a bigger refund. The size of the refund sets the ceiling on what Omega Funding can advance against it: 65 percent of a bigger refund is a bigger loan. And the bigger the claim Omega files, the more finance business it can route to its own lending division. None of the individual steps is improper, and a business entitled to a large credit is well served by fast cash. But the structure means the same corporate group benefits from a larger claim twice: once in the contingency fee on the front end, and again in the financing on the back. An independent lender underwriting a stranger's ERC claim has an incentive to scrutinize whether the claim is real, because the lender bears the loss if it isn't. A lender underwriting claims its own affiliate prepared has that incentive blunted. The "third-party lender" label sits in the same sentence as the word "division"; the lender's exact ownership is unresolved in the public record.²

When the refund does not come, the lender collects

An ERC advance is a loan rather than a bet because of what happens when the refund is late, reduced, or denied. On paper the borrower still owes the money (usually with personal guarantees and collateral behind the promise), and the lender can sue to collect. Omega Funding Solutions has done that.

In October 2023, Omega Funding Solutions sued the Reifman Law Firm and its principal, Steven William Reifman, in the Southern District of New York, to collect on money it had advanced against the firm's expected ERC refund.⁵ The defendants did not appear. The clerk entered a certificate of default in November 2023, and on March 14, 2024 the court entered a default judgment for Omega Funding Solutions: $161,878.81 against the firm and Reifman jointly and severally, plus pre-judgment interest at 9 percent from August 1, 2023, and $22,334.66 in attorneys' costs and fees against the firm.⁶ Omega Funding Solutions later moved to domesticate the judgment in Michigan to pursue collection there.⁷ A default judgment is a finding of liability. It was entered because the defendant never contested the suit; no trial on the merits took place.

The lender's downside is protected by the paperwork. The borrower's downside is owing the advance whether or not the refund ever materializes, on top of whatever contingency fee the affiliated accounting firm already collected. The marketing's talk of "no upfront fees" and one-day approvals does not foreground that risk.

The freeze

Omega Funding Solutions' value proposition strengthened at the moment the underlying claims became most doubtful. When the IRS imposed its processing moratorium on September 14, 2023, the agency stopped processing new ERC claims and slowed processing on claims already filed. The standard timeline went from 90 days to 180, and longer for claims facing further review, so the wait a bridge loan was designed to solve grew longer and less predictable.⁸ Omega's response to the freeze pitched two products to that stranded audience: an "ERC Compliance Review" for businesses worried about claims filed elsewhere, and Omega Funding Solutions bridge loans for clients whose refunds were now frozen.⁸

What is established, and what is not

The lender was launched by Omega Accounting as its own "new division" and marketed as a "third-party lender." What is not established is any authoritative finding that Omega Funding Solutions did anything unlawful; we found no enforcement action against it by name in this reporting, a bounded search result rather than a clearance.⁹

Notes

1. Omega Accounting Solutions, "Omega Accounting Solutions Launches Omega Funding Solutions, New Third-Party Lender Offering Advances on ERC Refunds to Small Businesses," GlobeNewswire, Nov. 1, 2022 (accessed in July 2026): OFS launched as a "new division" and described as a "third-party lender"; advances up to 65 percent loan-to-value against the anticipated ERC refund; no minimum or maximum loan amount; no upfront fees; approval usually within one day and closing within three; balloon repayment on refund arrival; service in 47 states; Jay Woods, founder and president, quoted. ↩₁ ↩₂ ↩₃ ↩₄
2. Zachary McEligot is listed as Omega Funding Solutions' president and chief executive per LinkedIn and business-data aggregators (ZoomInfo). Omega's Nov. 1, 2022 launch release (note 1) identifies Omega Funding Solutions as Omega Accounting's own "new division" and quotes founder Jay Woods announcing it; the loan terms (60-65 percent LTV historical loan, current buyout option, interest rate undisclosed) match that release and the marketing pages in note 3. A further entity, Omega Funding Holdings, appears in aggregator records alongside Omega Accounting and Omega Funding Solutions; the available public records do not resolve its exact role. ↩₁ ↩₂
3. Omega Funding Solutions marketing, omega-accounting.com/funding-solutions/ and omega-accounting.com/erc-advance-loan-services-omega-funding-solutions/ (viewed July 2026): 12-month bridge loans of up to roughly 60–65 percent of the ERC refund and a separate "ERC Buyout" option in which Omega purchases the claim rather than lending against it. ↩
4. ERC Advance Funding LLC, published program terms (viewed July 2026): advances up to 85 percent of the claim, illustrated with a 15 percent discount example, repayable if the IRS does not pay. Clear Cove Opportunities Fund I v. Addiction Recovery Care, LLC (S.D.N.Y.), filed contract: about an 82 percent upfront purchase price, half of any IRS interest retained, a 15 percent default rate, a personal guaranty, and an assigned collateral position. Angelica Capital Trust v. Addiction Recovery Care, LLC (S.D.N.Y.), filed contract: an advance of about $5.4 million against $8.1 million of expected credits (roughly 67 percent), with retainage, 85 percent of added IRS interest, an all-asset security interest, an 18 percent default rate, and a guaranty — a different structure from Clear Cove's, not the same 82 percent price. Both are structured as purchases rather than loans. Icarus Fund marketing (viewed July 2026): an outright buyout with no stated monthly interest and no upfront fee. These are firm- and engagement-specific terms, not a single uniform published market rate; this reporting did not independently confirm a purchase-price or monthly-rate figure for the broader market beyond what these specific sources state. ↩
5. Omega Funding Solutions, LLC v. Reifman Law Firm P.L.L.C.; Steven William Reifman, No. 1:23-cv-08975 (S.D.N.Y.), Complaint filed Oct. 12, 2023 (docket entries accessed via RECAP in July 2026). The suit sought repayment of an advance Omega Funding Solutions made against the firm's expected ERC refund. ↩
6. Clerk's Certificate of Default, Nov. 20, 2023 (Doc. 21). Default Judgment, Doc. 30, entered March 14, 2024 (the entry records Judge Stein's signature date as Feb. 15, 2024): judgment "against the Defendants Reifman Law Firm P.L.L.C. and Steven William Reifman, jointly and severally, in the amount of $161,878.81, together with pre-judgment interest at a rate of 9% to accrue beginning August 1, 2023," and "additional judgment ... [against] Defendant Reifman Law Firm P.L.L.C. for $22,334.66 in attorneys' costs and fees." Docket text read on CourtListener, Sept. 28, 2026; the judgment PDF is now in the RECAP archive. A default judgment is a finding of liability entered because the defendant did not appear, not a merits adjudication after contest. ↩
7. Certification of Judgment … v. Reifman Law Firm P.L.L.C., No. 2:24-mc-50895 (E.D. Mich., filed July 25, 2024), reflecting registration of the S.D.N.Y. judgment for collection in another district. ↩
8. Omega Accounting Solutions, "IRS Announces ERC Freeze: Omega Accounting Solutions Positioned to Support Clients and Victims of Questionable Claims," GlobeNewswire, Sept. 15, 2023 (captured July 5, 2026): the September 14, 2023 IRS moratorium (IR-2023-169) and Omega's paired marketing of an "ERC Compliance Review" and Omega Funding Solutions bridge loans during the freeze. ↩₁ ↩₂
9. A bounded search of public DOJ, FTC, IRS, SEC, and state attorney general records located no exact-name enforcement action against Omega (including Omega Funding Solutions) as of the July 11, 2026 compilation — a bounded negative search result, not proof no nonpublic investigation exists and not a finding of compliance. ↩

Primary sources used in this article

• Omega Accounting Solutions, "Omega Accounting Solutions Launches Omega Funding Solutions," press release, Nov. 1, 2022
• Omega Funding Solutions, LLC v. Reifman Law Firm P.L.L.C.; Steven William Reifman, No. 1:23-cv-08975 (S.D.N.Y.), Complaint (Oct. 12, 2023) and docket record through default judgment (read via RECAP)
• Certification of Judgment v. Reifman Law Firm P.L.L.C., No. 2:24-mc-50895 (E.D. Mich., July 25, 2024)
• Omega Accounting Solutions, "IRS Announces ERC Freeze…," press release, Sept. 15, 2023
• Omega Funding Solutions marketing pages (funding-solutions; erc-advance-loan-services)
• LinkedIn and business-data aggregator records (ZoomInfo) (company/principal identification)
• ERC Advance Funding LLC published program terms and Icarus Fund marketing, and the Clear Cove Opportunities Fund I v. Addiction Recovery Care, LLC and Angelica Capital Trust v. Addiction Recovery Care, LLC filed contracts (S.D.N.Y.)
• Bounded search of DOJ, FTC, IRS, SEC, and state attorney general records, compiled July 11, 2026