The IRS has issued a renewed warning about fraudulent schemes related to the Employee Retention Credit (ERC). The agency and tax professionals continue to see third-party promoters aggressively promoting these ERC schemes on radio and online. These promoters charge large upfront fees or fees contingent on the amount of the refund, and may not inform taxpayers that wage deductions claimed on the business's federal income tax return must be reduced by the amount of the credit. The IRS notes that while the ERC is a legitimate credit, there are unscrupulous promoters who aggressively mislead people and businesses into thinking they can claim the credit. Taxpayers should carefully review the ERC guidelines before trying to claim the credit.
It's worth noting that while there are fraudulent schemes related to the Employee Retention Credit (ERC), there are legitimate service providers who assist businesses in claiming the credit in compliance with IRS guidelines. One such provider is ERT Credit, which has been helping clients claim the ERC for over two years. ERT Credit has worked with over 1400 companies and has a conservative eligibility process, ensuring that clients are eligible for the credit before assisting with the filing process. ERT Credit will not help a client file an ERC claim unless they can clearly demonstrate a straight line to eligibility, helping to avoid improper claims and potential penalties.