Many clients have brought to my attention calls and solicitations they have received from companies promising to file for the EMPLOYEE RETENTION CREDIT (ERC) on behalf of their business.  The calls promise up to $26,000 per employee and are very tempting.  The companies contacting you are almost universally scammers. Here is what you need to know:

  • The ERC is a real thing and you may be entitled to a credit.
  • The deadline is not until 2024 for filings related to 2020, and 2025 for filings related to 2021.  The ERC scammers will mention there is a deadline in order to pressure you to act now.
  • They will apply for the credit on your behalf in an amount that far exceeds what you are actually entitled to in order to generate the largest possible commission for themselves.  They charge this commission up-front, BEFORE the IRS actually issues your refund.
  • It takes the IRS around 9 months to process your refund.  Most of these companies will be moved on to the next scam by then.
  • Even worse, the IRS is aware of the rampant fraud being committed by these companies and plans to extensively review the filings over the next couple years.  By the time the IRS corrects the record and asks you to repay what you were overpaid, (including the amounts you already paid to the scammers), plus penalties and interest, the scammers are gone and you are stuck!
What should you do?
  • The first thing you should do is approach your payroll service company and see if they handle these filings.  Some do, some do not.
  • In the event that your payroll service company cannot help you,  I can help you by performing a review to determine whether or not you are eligible.  The fee for this review is $500.
  • If you are eligible I can prepare the forms for you for a fee of $500 per quarter.  No commissions.
Be careful when dealing with any company that pops-up out of nowhere and asks for a commission to apply for any IRS or State refund.  The people calling you are telemarketers, not experienced tax professionals, and will say whatever the sales script tells them to say in order to get your money.  If you have any questions please do not hesitate to contact me.  Thank you.
I help clients reduce taxes, increase profitability, meet reporting requirements and save valuable time.  Contact me to find out how!