The IRS issued a warning this week for those claiming Employee Retention Credits (ERCs), as third parties continue to promote these credits to ineligible people. Online and radio advertisements by promotors promising huge tax savings should be taken with caution, as these businesses typically require a large up-front fee, and their representatives are not fully informing their clients of their tax responsibilities and the relevant requisite qualifications.
IRS Commissioner Doug O’Donnell spoke on that matter, stating, “While this is a legitimate credit that has provided a financial lifeline to millions of businesses, there continue to be promoters who aggressively mislead people and businesses into thinking they can claim these credits.”
ERC guidelines should always be thoroughly reviewed before claiming the credit. To see if you are eligible for ERC credits, click here.