Salt Lake City, Utah - The IRS issued a news release about the Employee Retention Credit (the “ERC”). Go to this link for the release: https://www.irs.gov/newsroom/irs-opens-2023-dirty-dozen-with-warning-about-employee-retention-credit-claims-increased-scrutiny-follows-aggressive-promoters-making-offers-too-good-to-be-true
Every day we are inundated with advertisements and commercials about the ERC. You have heard the ads – “call us today about the little-known ERC – where you can get up to $26,000.00 for each employee.” You then hear that “we helped XYZ Corporation legally obtain $6,900,000. If we can successfully help XYZ Corporation we can help you.” I have had numerous people ask me if this credit is a real credit and how can they apply for it. The ERC is real, and it has been put into place to help those taxpayers who have been affected by the pandemic. I then advise the taxpayer that if they are applying for the ERC, they need to make sure they have the evidence and documentation necessary to show that the taxpayer is eligible.
IRS Commissioner Danny Werfel said: "The aggressive marketing of these credits is deeply troubling and a major concern for the IRS." . . . "Businesses need to think twice before filing a claim for these credits. While the credit has provided a financial lifeline to millions of businesses, there are promoters misleading people and businesses into thinking they can claim these credits. There are very specific guidelines around these pandemic-era credits; they are not available to just anyone. People should remember the IRS is actively auditing and conducting criminal investigations related to these false claims. We urge honest taxpayers not to be caught up in these schemes."
The IRS is stepping up enforcement action involving the ERC claims. The IRS Small Business/Self-Employed division has trained auditors examining these types of claims, and the IRS Criminal Investigation Division is on the lookout for promoters of fraudulent claims for credits.
If you or your business is an eligible taxpayer claiming this credit on your original or amended employment tax return for qualified wages, then you should apply. The credit is there to assist eligible taxpayers. Just remember, having the appropriate documentation in hand once application has been made.
Tax problems are legal problems, and we solve both. If you or someone you know has an issue with paying their federal or state taxes and needs help to end their IRS nightmare, please contact Kent Brown at Strong & Hanni by either phone at (801) 532-7080 or email at: kbrown@strongandhanni.com or go to my personal Strong & Hanni webpage at: https://strongandhanni.com/attorneys/attorney-kent-brown/
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