IRS Warns Employers to Beware of Third-Party Services Offering Falsified ERC Claims
On October 19, 2022, the Internal Revenue Service (IRS) issued a warning to employers, notifying them to be wary of third-party services promoting fraudulent Employee Retention Credit (ERC) claim schemes. The ERC is a refundable tax credit established to help small and mid-sized businesses impacted by the COVID-19 pandemic between Q2 2020 and Q4 2021. Eligible taxpayers (employers) can apply for an ERC claim if they have continued to pay employees after COVID-induced shutdowns or had significant growth receipt declines during the mentioned period.
Moreover, they can only claim it on an original or amended tax return between March 13, 2020, and December 31, 2021. However, the IRS claims that many third parties are charging employers hefty fees upfront or adhering to unethical practices, such as filing falsified payroll tax returns. Some fraudulent services even target old or established businesses that do not qualify for this refundable credit for a quick payday. If you think you are eligible for an ERC claim, you should ignore advertised schemes that are too good to be true. Speak to a qualified CPA immediately for professional consultation and proper filing. Call us today at 832 295 3353 to speak to one of our ERC claim experts.