The IRS has been cautioning small businesses and tax-exempt organizations about the prevalence of fraudulent offers claiming to assist in processing the Employee Retention Credit.
It’s a well-known saying: “If it sounds too good to be true…you know the rest.” And the IRS knows it too.
According to the IRS, small businesses and tax-exempt organizations should be wary of scammers who make grand promises regarding the Employee Retention Credit. The only legitimate way to claim this credit is by including it on your federal tax return. These deceitful individuals may deceive you regarding your eligibility, potentially charging exorbitant fees under the pretense of assisting you in claiming the credit. However, falling into their trap can lead to significant tax problems, as if you claim the credit without meeting the requirements, you will be obligated to repay it.
Misinformation about the Employee Retention Credit can be found across various platforms such as radio, TV, social media, and the internet. Scammers might even reach out to you through emails or phone calls, enticing you with the promise of quick money and an “easy application process.” Therefore, it’s crucial to exercise caution and verify your eligibility before claiming the credit.
To ensure that you qualify and understand the correct procedure for claiming the Employee Retention Credit, the IRS advises visiting IRS.gov/erc .
Additionally, you can watch the IRS video guidance on this topic on YouTube .
For further information on this subject, please don’t hesitate to contact us at Contact – David Nosnik CPA PLLC .