The Internal Revenue Service (IRS) has recently proclaimed an immediate suspension of the...
Beware of Fraudulent Companies Processing ERTC Claims
As a business owner, it is crucial to stay informed about potential ERTC scams and frauds that can harm your business. The Internal Revenue Service (IRS) has recently issued a warning to all entrepreneurs regarding fraudulent companies that claim to help process Employee Retention Tax Credit (ERTC) and Employee Retention Credit (ERC) claims. In this article, we will delve into the details of this warning and discuss why it is imperative to be cautious when engaging with third-party service providers.
The Importance of ERTC/ERC Claims:
Employee Retention Tax Credit (ERTC) and Employee Retention Credit (ERC) are valuable provisions introduced by the government to assist businesses affected by the COVID-19 pandemic. These credits provide eligible businesses with financial relief by reducing their tax liabilities or providing direct refunds for qualified wages paid to employees.
The IRS Warning:
The IRS has become aware of fraudulent companies that target business owners seeking assistance with their ERTC/ERC claims. These unscrupulous entities often promise to expedite the claim process, maximize the credits, or guarantee specific outcomes. However, their primary goal is to exploit unsuspecting business owners by charging exorbitant fees or stealing sensitive financial information.
Red Flags to Watch Out For:
- Unsolicited Offers: Be cautious if you receive unsolicited calls, emails, or messages from companies claiming to specialize in ERTC/ERC claims. Legitimate service providers typically do not engage in aggressive marketing tactics.
- Excessive Fees: Beware of companies that demand upfront fees or charge a percentage of the credits obtained. Reputable service providers usually work on a fee-for-service basis or charge a reasonable flat fee.
- Outlandish Promises: If a company guarantees a specific outcome or promises to secure the maximum credit amount, it should raise red flags. ERTC/ERC eligibility and credit amounts depend on various factors, and no one can guarantee a particular result.
Lack of Credentials: Ensure that the company you choose to work with possesses the necessary qualifications and credentials. Look for certified public accountants (CPAs), enrolled agents, or reputable tax professionals who have experience in handling ERTC/ERC claims.
Protecting Your Business:
To safeguard your business from potential ERTC fraud, consider the following steps:
- Research and Due Diligence: Thoroughly research any company before engaging in its services. Check their credentials, read reviews, and verify their track record with previous clients.
- Verify the Company's Identity: Ask for the company's Employer Identification Number (EIN) and perform a quick search to confirm its legitimacy. Scammers often use fake EINs or provide inaccurate information.
- Seek Referrals: Consult with fellow business owners, industry associations, or professional networks to get recommendations for reputable service providers who specialize in ERTC/ERC claims.
- Contact the IRS Directly: If you suspect fraudulent activity or encounter a suspicious company, report it to the IRS immediately. They have dedicated channels to handle such complaints and can guide you on the appropriate course of action.
Also, find out more about ERTC Funds for Medical and Dental Practices by reading this short article and see if you're business is eligible!
As the saying goes, "Forewarned is forearmed." Being aware of the risks associated with fraudulent companies claiming to help process ERTC/ERC claims can protect your business from falling victim to scams. By remaining vigilant, conducting due diligence, and staying informed about the IRS's warnings, you can ensure that your ERTC/ERC claims are handled by trustworthy professionals who have your best interests at heart. Remember, it's essential to prioritize the security and well-being of your business in these uncertain times. So, don't postpone your opportunity, get in touch with our office at Rancho Cucamonga today!