The IRS has issued a warning about Employee Retention Credit (ERC) claims as part of its 2023 Dirty Dozen list of tax scams. The Dirty Dozen is an annual list of the most common and aggressive tax scams that taxpayers should be aware of.
According to the IRS, the ERC is a valuable tax credit designed to help businesses keep employees on their payroll during the COVID-19 pandemic. However, the IRS is concerned that some businesses may be making fraudulent or exaggerated claims for the credit, and that some promoters are making offers that are too good to be true.
The IRS has said that it will be increasing its scrutiny of ERC claims in 2023, and will be taking aggressive action against those who make fraudulent or exaggerated claims. This could include audits, criminal investigations, and penalties.
The IRS has urged taxpayers to be cautious when making ERC claims, and to only work with reputable tax professionals who have experience with the credit. Taxpayers should also be wary of promoters who offer to help them claim the credit in exchange for a fee.
If you are a business owner who is eligible for the ERC, it is important to understand the requirements for claiming the credit and to keep accurate records to support your claim. If you are unsure about whether you are eligible for the credit, or how to claim it, call our office today at (239) 939-2233.