The IRS has issued a warning to businesses about questionable employee retention credit (ERC) claims, offering seven suspicious warning signs that could indicate potential problems.
These signs include misinformation spread by unscrupulous promoters urging taxpayers to claim the ERC even if they don't qualify.
The IRS is urging businesses to review their qualifications and seek advice from trusted tax professionals before the March deadline.
Employers should be cautious of red flags such as claiming the credit for too many quarters, citing government orders that don't qualify, and overclaiming the ERC for wages.
The IRS emphasizes the importance of resolving incorrect claims to avoid penalties and interest.