Last week, (March 7, 2023) the Internal Revenue Service (IRS) issued another warning urging businesses to review the guidelines laid out for the Employee Retention Credit (ERC) before proceeding to claim the credit on their annual tax returns.
This second warning (the first issued in the Fall 2022) is a result of rising numbers of third party “promoters” claiming to be ERC tax experts who are aggressively pushing ineligible taxpayers to file the credit while they charge sizeable upfront fees.
The ERC was established during the COVID-19 pandemic to provide a lifeline to businesses who continued paying employees during shutdowns and/or those businesses that had significant declines in gross receipts from March 13, 2020–Dec. 31, 2021. Eligible taxpayers can claim the ERC on an original or amended employment tax return for a period within those dates.
Please select this link to read the complete article from OSAP Strategic Partner Clark Schaefer Hackett.