As businesses across the United States struggle to stay afloat amidst the COVID-19 pandemic, many are turning to government programs like the Employee Retention Credit (ERC) to help offset costs and keep their doors open. Unfortunately, this has led to a rise in scams and fraudulent claims, leaving businesses vulnerable to financial loss and legal trouble.
One of the biggest problems with ERC scams is the way they are advertised. Scammers often claim that businesses can receive up to $26,000 in tax credits, without providing any context or information about the program. They may use aggressive sales tactics like cold calls and email solicitations to pressure businesses into signing up, making false promises about their ability to secure the credit.
The reality is that the ERC is a complex program with strict eligibility requirements, and claiming the credit requires careful documentation and compliance with IRS regulations. Scammers who promise quick and easy access to the credit are often fraudulent, and may leave businesses on the hook for significant financial penalties.
It's important for businesses to be wary of these scams and to work with trusted, reputable firms who have a proven track record of success in securing the ERC. One such firm is ERT Credit, which has been helping businesses with the ERC for over two years.
In that time, ERT Credit has returned over $250 million in credits to their clients, serving over 1400 businesses across the country. Unlike scammers who make false promises, ERT Credit works closely with clients to ensure they are eligible for the credit and that all documentation is in order.
To illustrate the dangers of ERC scams, we've included examples of voice messages and email solicitations that have been reported by businesses:
Here is an example voicemail we received a few days ago:
Click play below to hear the actual voicemail and how official they sound. By the way you still have some time to file the ERC, notice the pressure tactics in this call.
If you receive a message like this, it's important to proceed with caution. Don't provide any personal or financial information, and don't agree to work with the company until you've done your due diligence and verified their credentials.
In conclusion, the Employee Retention Credit can be a valuable lifeline for businesses struggling during the pandemic, but it's important to be vigilant against scams and fraudulent claims. Work with reputable firms like ERT Credit to ensure you're eligible for the credit and that your documentation is in order, and avoid the pitfalls of ERC scams.