What is the Employee Retention Credit?
The Employee Retention Credit (ERC) was created to allow business owners to claim a percentage of wages paid to eligible employees during the COVID-19 pandemic as a refundable tax credit. The purpose of this credit was meant to compensate businesses who faced challenges during the Coronavirus pandemic but chose to keep their employees on payroll.
To qualify, employers must have operated a trade or business during the COVID-19 pandemic and experienced either a reduction in revenue or a suspension of operations that resulted in a more-than-nominal impact to the business due to government orders.
Under the ERC, eligible employers could claim up to $26,000 per employee for the Employee Retention Credit.
ERC done RIGHT.
In response to the opportunity for such large tax credits, out-of-state marketing companies advertised everywhere, and many led business owners down the wrong path. We’ve seen countless business owners tricked into filing for these claims without confirming they are eligible for Employee Retention Credits, and the national companies have no skin in the game – they take their percentage of the credit and run.
We aren’t the only ones who have seen this, either.
In response to such widespread improper ERC claims, the IRS placed the ERC on its “Dirty Dozen” list of top tax scams. The IRS also placed a moratorium on processing new ERC claim filings for an indefinite period while they enhance their processes and procedures for identifying improper claims and auditing or criminally investigating them. There was also temporarily an ERC Voluntary Disclosure Program (VDP) for businesses who received erroneous ERC refunds, and a Claim Withdrawal Process that is still in effect.
The IRS has recovered 100s of millions of dollars from Taxpayers through this Voluntary Disclosure Program and Claim Withdrawal Process. They’ve also begun to audit and criminally investigate thousands.
The eligibility requirements are complex, and the risk for audits and investigations is high. If you aren’t sure you should have received the ERC credits you did, now is the time to contact Bryson Law Firm, L.L.C. to assist you in your ERC efforts. Bryson Law Firm, L.L.C. can help you evaluate whether you were truly eligible for the Employee Retention Credit and help you address your claims.
Already received an audit notice or have been contacted by the IRS Criminal Investigation Division? It’s important that you hire someone you can count on to resolve this matter IMMEDIATELY. Remember, we are tax attorneys. Determining your eligibility and defending or resolving your claims is a complex process that involves a lot of legalities – this is a legal issue – so get legal help.
Your Next Steps
If you are a business owner who filed for and/or received IRS Employee Retention Credits, we can help you confirm what your business qualifies for, assist you in requesting any necessary claim withdrawals, and represent you before the IRS in an audit or investigation. We’ll schedule a FREE initial consultation FOR YOU to help determine your options! Contact our office today or fill out the form below to get started!
