What Role Can Education Play in Preventing ERTC Fraud?

December 1, 2023
Dayes Law Firm

The IRS recently announced a moratorium on accepting new Employee Retention Tax Credit (ERTC/ERC) applications through the end of the year due to concerns about fraud in the program after “growing evidence of questionable claims.” However, some business owners who get caught up now and in the near future in IRS ERTC audit cases may not even know that their claim is fraudulent, and getting a bit more information on what to look for might help employers nationwide going forward. 

How Education Can Help Prevent ERTC Fraud

On September 14, the Internal Revenue Service announced an “immediate moratorium” through at least the end of the year on processing new ERTC claims. “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 of the action. 

Werfel said the agency is looking to “add new protections and safeguards to stop bad claims from ever coming in,” noting that, “In the meantime, businesses should seek out a trusted tax professional who actually understands the complex ERC rules” when it comes to getting assistance with tax credit claims. 

Ultimately, education on what the ERTC is and how a third-party promoter, tax attorney, or other partners can help you apply for it may be key to preventing ERTC fraud. If more employers understand the tax credit and how you can be eligible to apply for it, that can cut down on some of the confusion around qualifying to claim the ERTC.

Plus, campaigns on what to look for when it comes to “unscrupulous actors” that may lead you to turn in a fraudulent claim for your business can help educate business owners and help them choose the right partners for working on Employee Retention Tax Credit applications. 


Avoiding ERTC Fraud 

Although the IRS already released a guide to red flags to look for regarding Employee Retention Tax Credit claims, campaigns to educate more taxpayers and business owners may help spread this information and other tips about ERTC fraud far and wide. 

The agency lists warning signs like large upfront fees to claim the credit, claims of an “easy application process,” and more when it comes to potential ERTC fraud. But more education may be needed so business owners don’t work with less-than-honest third-party promoters who could ultimately land them and their business in hot water with the IRS. 

Informing more business owners of the exact requirements around the ERTC, and what they should look for in a tax attorney to help them claim the credit, can help prevent ERTC fraud – not to mention, can also prevent a whole lot of heartache for employers who are just trying to do the right thing with this program.

How Dayes Law Firm Can Help

The IRS recommends working with a “trusted tax professional” on your Employee Retention Tax Credit application. Here at Dayes Law Firm, we think we can prove we’re the right choice to partner with when it comes to ERTC assistance. 

Dayes Law Firm and our partner firms have already helped hundreds of business owners file for the ERTC, and those filings represent more than $100 million in tax credits. We have proven success in the area of ERTC applications, and we’d be more than happy to help you with your claim. 

Please don’t hesitate to contact us today for a free, no-obligation consultation. We can discuss your business’s unique needs and determine whether your business is qualified to apply for the ERTC in the first place, and then assist you with every step of the process to hopefully avoid ever upsetting the IRS. The last thing we want you to do is turn in a fraudulent claim, and we will be honest with you about your eligibility and what to expect with the process. 
Feel free to give us a call today to see how the ERTC team at Dayes Law Firm can help you!