01 May IRS Issues Renewed Warning on Employee Retention Credit Claims
The IRS has issued a renewed warning urging people to carefully review the guidelines for the Employee Retention Credit (ERC) before attempting to claim it, as promoters continue to push ineligible people to file. The IRS and tax professionals have seen third parties aggressively promoting these ERC schemes on radio and online, charging large upfront fees or a fee contingent on the refund. The promoters may not inform taxpayers that wage deductions claimed on the business’ federal income tax return must be reduced by the amount of the credit.
The IRS warns that people and businesses should avoid this scheme and not file improper claims, as improperly claiming the ERC could result in taxpayers being required to repay the credit along with penalties and interest.
For more information, please visit the official IRS website: