Entrepreneurship is a thrilling journey, but it comes with its fair share of risks. One of the latest risks is the Employee Retention Credit (ERC) fraud, which is notably on the rise. The IRS has been pushing out notices of warnings since the credit originated – but risk continues to escalate, especially with the clock ticking on the cash that remains available to claim. The IRS recently issued yet another warning, urging people to review ERC guidelines carefully before claiming the credit, noting that fraudsters are aggressively promoting these schemes on radio and online, charging hefty upfront fees so they can take your cash and run, or submit inadequate and fraudulent rationale for the claim on your behalf.
Imagine unwittingly participating in ERC submission by selecting an untrustworthy resource. You could risk everything you've worked for - and everything you've got on the line.
The ERC credit is real, and you're due cash if you qualify, but don't take this stupid risk. Do the work and find a reputable resource. Months ago my team and I noticed the fraud overflowing into head-scratching TikTok ads that heavily promote "ERC cash" to individual employees. This is fake advertising. Facebook groups with what feel like obvious pyramid schemes where you have to pay to become an ERC referral partner? Also red flags for scammy behavior and likely foul business. Run far away.
With the IRS repeating warnings and noting an influx of fraud, audit risks are likely to increase. Beware of DIY ERC work being performed inaccurately or using inexperienced or incompetent "specialists." You don't want to be caught in the crosshairs of the IRS.
Lastly, with just over half of the original $80 billion budgeted for businesses claimed, there is still a significant amount of money available through the Employee Retention Credit (ERC). However, as the IRS has warned, fraudulent actors continue to aggressively promote and mislead individuals into filing for the credit, which puts the remaining funds at risk. That's why it's critical for businesses to act now and work with reputable and trustworthy financial specialists to ensure their ERC submission is accurate and compliant with IRS guidelines.
ERC websites are popping up, seemingly multiplying exponentially, overnight. It's a cash grab - a cash grab for your hard-earned money. Don't fall for it. Trust a company that has a history of excellent financial-focused services. Choose a professional service to include audit protection and you’ll have the best of the best.
I can’t stress enough that the ERC is a legitimate credit that has provided a financial lifeline to millions of businesses, but fraudsters are ruining it for everyone. Don't let these bad actors take advantage of you. Protect yourself by carefully selecting a trustworthy partner to help you claim the credit. Stay smart and go get your cash.