Employee Retention Credit Scam Awareness Guide

This guide addresses the Employee Retention Credit (ERC), a tax credit designed to assist businesses affected by the pandemic. It outlines the eligibility criteria for the ERC, which include suspension of operations due to government orders and significant declines in gross receipts. The document highlights the rise of scams targeting businesses seeking to claim the ERC, as noted by the IRS in its 2023 Dirty Dozen list of tax scams. Various deceptive practices are documented, including false claims of eligibility, manipulation of documentation, and excessive fees based on the credit amount. The guide emphasizes the importance of working with reputable tax advisors and warns businesses about the potential consequences of incorrect ERC claims, including audits and penalties from the IRS. It concludes by advising businesses to ensure accuracy and compliance when calculating their ERC claims, as the responsibility ultimately lies with the claimant.