There has been no shortage of warnings related to tax scams in the last few months, and the Internal Revenue Service (IRS) has another one – specifically for businesses.

This scam relates to the Employee Retention Credit (ERC), which was geared towards business owners during the pandemic. For the last few years, business owners who either lost a significant amount of revenue or were paying their employees while closed during the COVID-19 pandemic were eligible to claim this credit on their taxes.

However, scammers are sending phishing emails and posting on social media encouraging taxpayers to claim this credit even when they’re not eligible to do so anymore.

“While this is a legitimate credit that has provided a financial lifeline to millions of businesses, there continues to be promoters who aggressively mislead people and businesses into thinking they can claim these credits,” said Doug O’Donnell, acting IRS commissioner.

“Anyone who is considering claiming this credit needs to carefully review the guidelines. If the tax professional they’re using raises questions about the accuracy of the Employee Retention Credit claim, people should listen to their advice. The IRS is actively auditing and conducting criminal investigations related to these false claims. People need to think twice before claiming this,” he said.

Who is eligible for the ERC?

The IRS outlines three primary factors for taxpayers to qualify for the ERC:

• Qualify as a recovery startup business for the...

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