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Omega Accounting Solutions

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ERC
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ERC
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The profile

An Orange County accounting firm that turned into an Employee Retention Credit processor: 24 employees about two years before March 2023, 175 by then, with its founder calling the credit "a gold rush." It also lent against clients' pending refunds through Omega Funding Solutions, which won a default judgment against one borrower, a law firm.

Identity and role

Omega Accounting Solutions, Inc. was founded in 2007 by Jay Woods, who "bootstrapped Omega Accounting with his own funds, specializing in providing fractional accounting for small business owners," the Orange County Business Journal reported in March 2023. Its press releases call Woods founder and president (March 2023) and chief executive (September 2023). By 2023 the firm was in Irvine, California, in 51,000 square feet at the FivePoint Gateway complex, subleased from Broadcom.

Pandemic-relief role

About two years before March 2023, the Business Journal wrote, Omega employed 24 people in a 3,000-square-foot office in Laguna Niguel; "then business exploded when Woods pivoted to a little-known government credit program." Woods had 175 employees and expected 300 by year end. "For us it's a gold rush," he said. "It's a little bit like the Wild West." He had grown from 100 to 5,000 clients, was adding 150 a week, and predicted sales would climb "from under $80 million last year to $250 million this year." The firm had reported revenue of $42.7 million for the year ended June 30, 2022, up 3,247 percent in two years. Those are the firm's own figures.

The same article quotes Omega's website warning about "many illegitimate 'ERC mills' advising businesses to claim credits they may not be entitled to," and Woods saying, "There are a lot of bad actors."

On March 30, 2023 Omega announced that Merchant Maverick, a small-business review site, had named it the "#1 Best ERC Company for Getting Your ERC Funds." The release also promoted its "newest division, Omega Funding Solutions (OFS), a third-party lender offering short-term bridge loans to those organizations anticipating ERC refunds," open to clients of Omega and of "other processors."

When the IRS stopped processing new Employee Retention Credit (ERC) claims on September 14, 2023, Omega issued a release the next day saying it was "well positioned to support existing clients, those who may have fallen victim to questionable practices, and those who were depending on their ERC return." Woods said: "We substantiate each ERC claim, through diligent documentation of eligibility, tailored to each client, as opposed to a one-size-fits-all approach."

  • Omega Funding Solutions v. Reifman Law Firm (S.D.N.Y. No. 1:23-cv-08975): Omega's lending arm sued a law firm and its principal on October 12, 2023. The defendants did not answer, and on March 14, 2024 the court entered a default judgment of $161,878.81, jointly and severally, plus 9 percent pre-judgment interest from August 1, 2023, and $22,334.66 in fees and costs against the firm. The judgment does not describe the underlying loan.
  • No government enforcement action against Omega appears in the records we reviewed.

Where they are now (2025–2026)

The 2024 judgment is the last court record involving the Omega companies that we found.

Sources

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