Employers should be careful before claiming the Employee Retention Credit (ERC).
Over the past several months, the Internal Revenue Service (IRS) has warned taxpayers twice about third parties who advise employers to claim the ERC when they may not qualify. A tax preparation company in Utah and two of its executives also face federal fraud charges relating to the improper claiming of the ERC.
The Internal Revenue Service (IRS) issued a renewed warning to taxpayers on March 7, 2023, urging them to carefully review the Employee Retention Credit (ERC) guidelines before claiming the credit. This warning followed an October 19, 2022 IRS news release that warned employers about third parties who advise employers to claim the ERC. The IRS and the tax community continue to see tax credit promoters aggressively advertising too-good-to-be-true ERC claims. Characteristics of ERC promoters include:
The ERC is a legitimate, refundable tax credit designed to help businesses who continued to pay employees while they were shut down due to the COVID-19 health crisis or who experienced a significant decline in gross receipts in 2020 and 2021. However, acting IRS Commissioner Doug O’Donnell believes that “there continue...
Foley partner Lisa Noller, Chair of the Firm’s Litigation Department, will be speaking at the American Bar Association’s Qui Tam & Civil False Claims and Healthcare Fraud Institute in Washingt...