Navigating the Snares of Employee Retention Tax Credit

by | Sep 20, 2023 | Business Finance, Business Strategy, Resources | 0 comments

Navigating the Snares of Employee Retention Tax Credit

In the tumultuous times of the pandemic, the Employee Retention Tax Credit (ERTC) has been a financial lifeline for countless businesses. However, along with the uptick in claims, there has been a significant rise in exaggerated and fraudulent claims. The IRS has taken note and is stepping up its game.

The IRS Clamps Down

The IRS is not one to sit idly by while shady promotions and aggressive promoters exploit a system designed to help honest businesses. The result? An increase in audits and investigations. These promoters, who charge high fees and make grandiose promises, increase the risk of claims being denied or requiring repayment.

Recognizing the Signs of Aggressive Promoters

Aggressive promoters have a few tell-tale signs: unsolicited phone calls, promises of easy application, hefty upfront fees, and qualifying claims before even peaking at your taxes. If someone promises you a million dollars but hasn’t even glanced at your financials from last year, you need to be wary.

How Small Business Owners Can Protect Themselves

The best defense against these scams? Knowledge. Small business owners must take the time to understand the ERTC rules and requirements thoroughly before applying.

In these uncertain times, being vigilant’s more important than ever. Knowing the signs of aggressive promoters and understanding the ERTC requirements can help you avoid potential risks. So, stay safe, stay informed, and make it a productive day!

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