Your business has likely been the recipient of many robocalls telling you that you’re missing out on the Employee Retention Credit (ERC). Callers promise eligibility and a fast, easy application process. Don’t fall for it, says the IRS.
The ERC (also known as the ERTC) is a tax credit that was introduced during COVID to make it easier for struggling employers to keep employees on the payroll. It was available to eligible employers for qualified wages paid from March 12, 2020 – October 1, 2021 (recovery start-up businesses qualified through December 31, 2021).
Like many pieces of pandemic-era legislation, ERC parameters changed several times, which makes claiming the credit not as straightforward as these cold callers make it out to be.
Third parties typically charge significant upfront fees, without bothering to explain that your business may not be eligible after all. If that’s the case, your business will not only need to return the refund. You’ll also incur costs to amend your employment tax returns, and may even be subject to penalties and interest.
Don’t fall victim to this or any other scam. If you need to confirm eligibility for this or any other possible tax credits, please get in touch.