IRS warns employers to beware of third parties promoting improper Employee Retention Credit (ERC) claims
On October 19, 2022, the Internal Revenue Service warned employers to be wary of third parties who are advising them to claim the Employee Retention Credit (ERC) when they may not qualify. These third parties often charge large upfront fees or a fee that is contingent on the amount of the refund and may not inform taxpayers that several income tax returns may need to be amended. Businesses are encouraged to be cautious of advertised schemes and direct solicitations promising tax savings that are too good to be true. Remember that taxpayers are always responsible for the information reported on their tax returns. Improperly claiming the ERC could result in taxpayers being required to repay the credit along with penalties and interest.
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