The IRS reported again today that it continues to see the aggressive marketing of the Employee Retention Credit (ERC), also sometimes called the Employee Retention Tax Credit (ERTC), preying on innocent businesses and payroll professionals.
Aggressive promoters at ERC Mills present wildly misleading claims about this credit. They can pocket large fees while leaving taxpayers claiming the credit at risk of having the claims denied or facing scenarios where they need to repay it.
Aggressive promoters at ERC Mills present wildly misleading claims about this credit. They can pocket large fees while leaving taxpayers claiming the credit at risk of having the claims denied or facing scenarios where they need to repay it.
Remember the old adage says: If it sounds too good to be true, it probably is.
These ERC "Mills" make fraudulent claims for the credit and charge large fees. They are largely comprised of sales and marketing professionals purporting to be "ERC experts" or "consultants" and pushing tenuous, high-risk eligibility positions that taxpayers do not qualify for.
If you are wondering why your accountant or payroll professional did not file a claim for you for an Employee Retention Credit think about whether you had a Payroll Protection Loan (PPP) that was forgiven. Employers cannot claim the ERC on wages that were reported as payroll costs in obtaining PPP loan forgiveness or that were used to claim certain other tax credits. In other words, there is no double dipping.
For more information:
IRS issues renewed warning on Employee Retention Credit claims; false claims generate compliance risk for people and businesses claiming credit improperly | Internal Revenue Service
IRS alerts businesses, tax-exempt groups of warning signs for misleading Employee Retention scams; simple steps can avoid improperly filing claims | Internal Revenue Service
These ERC "Mills" make fraudulent claims for the credit and charge large fees. They are largely comprised of sales and marketing professionals purporting to be "ERC experts" or "consultants" and pushing tenuous, high-risk eligibility positions that taxpayers do not qualify for.
If you are wondering why your accountant or payroll professional did not file a claim for you for an Employee Retention Credit think about whether you had a Payroll Protection Loan (PPP) that was forgiven. Employers cannot claim the ERC on wages that were reported as payroll costs in obtaining PPP loan forgiveness or that were used to claim certain other tax credits. In other words, there is no double dipping.
For more information:
IRS issues renewed warning on Employee Retention Credit claims; false claims generate compliance risk for people and businesses claiming credit improperly | Internal Revenue Service
IRS alerts businesses, tax-exempt groups of warning signs for misleading Employee Retention scams; simple steps can avoid improperly filing claims | Internal Revenue Service