In their IR-2022-183 publication the Internal Revenue Service (IRS) warned employers to be wary of third parties who are advising them to claim the Employee Retention Credit (ERC) when they may not qualify. Business owners and Certified Public Accounts are warned to carefully review the guidelines for claiming this credit before doing so.
While we have prepared or obtained assistance for ERC claims for qualifying clients and many have already received their refunds, we are wary of these so called “credit mills”. We want our clients to receive any amounts they are entitled to; however, please note that there are a lot of unscrupulous promoters out there looking to make a quick dollar while leaving you hanging for the taxes, penalties and interest. They are not concerned about the rules, just their cut of the funds up front. They will be long gone when the time arrives for the IRS audit, which has been extended from the normal three years to five years.
The various scams even include mailings which appear to be from the IRS or Treasury Department. In fact, our firm received one, and it looked almost identical to IRS correspondence telling us that we qualify for millions of dollars, when, in fact, we know that we do not. Don’t be one of the victims.
Click here to read more ERC scams.
Source: Internal Revenue Services
