How Can I Protect My Business from ERTC Scams?

November 27, 2023
Dayes Law Firm

Business owners who haven’t yet applied for the Employee Retention Tax Credit (ERTC/ERC) have limited time to do so, but some have decided they need assistance from a third party or tax professionals to get the job done. 

However, the IRS recently paused the processing of ERTC claims amid concerns of fraudulent claims being turned in due to business owners being scammed by “unscrupulous actors.” Business owners need to watch out for certain signs in order to avoid a similar outcome. 

What Steps Can I Take to Protect My Business from ERTC Scams? 

“The IRS is increasingly alarmed about honest small business owners being scammed by unscrupulous actors, and we could no longer tolerate growing evidence of questionable claims pouring in,” IRS Commissioner Danny Werfel said in September of the “immediate moratorium” on processing new ERTC claims. 

Fortunately, there are ways for business owners to protect their businesses from these types of scams. 

First of all, employers should watch out for third-party promoters who encourage them to apply for the ERTC when they don’t actually qualify for it – or, who claim you can apply for it without honestly discussing the unique circumstances of your business. This is a huge red flag when it comes to ERTC assistance. 

Any reputable ERTC company or tax professional should be willing to discuss the requirements and whether your business meets them before claiming you can absolutely apply for the tax credit. At Dayes Law Firm, for instance, we offer a free, no-obligation consultation to talk about you and your situation before proceeding at all with an ERTC claim. 

Companies that require large, upfront fees to help you with your Employee Retention Tax Credit application should also be avoided. The IRS lists this and “leaving out key details” as just a few ways that promoters lure victims who may end up being scammed in the end. 

Speaking of the IRS, the agency also recommends asking for “a detailed worksheet explaining ERC eligibility and the computations used to determine the ERC amount,” and getting assistance from a trusted tax professional when it comes to claiming the ERTC

“Businesses should seek out a trusted tax professional who actually understands the complex ERC rules,” Werfel stated.

How Dayes Law Firm Can Help with the ERTC

Working with a team that thoroughly understands the Employee Retention Tax Credit and can back up that knowledge with success stories may be your best bet to avoid ERTC scams. 

At Dayes Law Firm, our team and our partner firms have already helped hundreds of business owners file for the tax credit, and those filings represent more than $100 million in tax credits. We have countless proven success stories when it comes to tax law matters, and would be happy to comprehensively discuss our areas of expertise with you and determine how we can best assist you and your business with the ERTC. 
Please feel free to contact our firm to learn more about our Employee Retention Tax Credit experience and to discuss your potential case. We can talk through any questions or concerns you may have in an initial evaluation at no cost to you. Give us a call today to learn more!