The IRS has heightened its review of employers and their claims for the Employee Retention Tax Credit (ERTC), so at the lawyers from Terrence A. Grady & Associates want to share some information you need to know about the ERTC for your business in Columbus, OH or anywhere else in the United States.
In a recent IRS News Release (IRS News Release IR-2023-105), the IRS warns businesses to watch out for fraudulent and misleading ERTC promoters. In the release, the IRS says that the “aggressive marketing of the ERTC” continues to prey on innocent business owners by grossly misrepresenting and exaggerating who qualifies for this credit. This May 25, 2023 Notice is one of the many warnings that the IRS issued regarding fraudulent ERTC promoters.
Due to this continued problem, the IRS has stepped up its audit and criminal investigation units to work these claims. According to the IRS, “’[t]his is a ongoing priority area in many ways, and the IRS continues to increase compliance work involving ERC. The IRS has trained auditors examining ERC claims posing the greatest risk, and the IRS Criminal Investigation Division is working to identify fraud and promoters of fraudulent claims.“
What You Need to Know to Help Protect Your Business
The IRS has identified some warning signs for business owners related to the Employee Retention Tax Credit, which the team from Terrence A. Grady & Associates wants to share. Some of these warnings signs include:
- Unsolicited calls or advertisements mentioning an “easy application process.”
- Aggressive claims from the promoter that the business qualifies before any discussion of the company’s tax situation. The ERTC is a complex credit that requires careful review before a tax professional can determine that the company qualifies for the credit.
- Wildly aggressive suggestions from marketers urging businesses to submit the claim because there is nothing to lose. In reality, those improperly receiving the credit could (at the very least) have to repay the credit-along with substantial interest and penalties.
Contact Our Lawyers Today to Learn More!
If you already claimed the Employee Retention Tax Credit (ERTC) and are concerned that your company in Columbus, OH or elsewhere in the U.S. may not have qualified, contact us at Terrence A. Grady & Associates today to discuss your options! There are steps you may be able to take to correct the erroneous credits and alleviate any potential exposure for civil or criminal investigations.