Does this sound familiar? A random third party has promised your business that you could receive thousands of dollars in Employee Retention Credits.

If it does, you’re not alone.

And if it sounds too good to be true … well, you know the rest.

The IRS has repeatedly warned businesses about scammers telling businesses they’re eligible for money from the ERC when they’re not.

The ERC is a refundable tax credit the government introduced during the pandemic. It was meant as an incentive for employers to keep employees on the payroll during a “partial or full shutdown of business operations mandated by a governing entity” or a “significant decline in gross receipts.”

The ERC requirements changed frequently because of tweaks to the legislation. So, the process is a lot more complex than ERC scammers make it out to be.

Here are some signs that the ERC claim you’ve received is a scam:

  • A person or vendor you don’t know sends you ads, calls, emails, or texts.
  • Phrases like “determine your eligibility within minutes.”
  • Big fees you have to pay upfront to claim your credit.
  • Fees based on the percentage of the ERC they say you can claim.
  • Promises that your business qualifies for the credit without discussing your tax situation.
  • More promises that you “have nothing to lose.” The reality is you’ll have to repay the credit — and penalties — if you’re actually not eligible.

If you want help deciding if you’re actually eligible for the ERC, let us know.