IRS again warns of improper ERC claims

March 9, 2023

The IRS has renewed its warning urging people to carefully review the employee retention credit (ERC) guidelines before trying to claim the credit as promoters continue pushing ineligible people to file.

The IRS and tax professionals continue to see third parties aggressively promoting these ERC schemes on the radio and online. These promoters charge large upfront fees or a fee that is contingent on the amount of 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. Tax professionals note they continue to face pressure from people wanting to claim credits improperly. See the IRS warning.

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