Due to the perceived popularity of the ERC firms have been popping up and promoting the ERC.
While this has been going on the IRS has been issuing advisory warnings of third parties promoting improper ERC claims to employers who may or may not qualify for the ERC. See IRs news release 2023-105.
Some promoters are claiming large refunds per employee and charging large fees for assisting in claiming the credit.
The employers who get fraudulent ERC monies have to pay the funds back and will incur penalties and interest.
Also filed tax returns are needed to be amended for the time period of the claims. We as a firm will not amend a filed return for an ERC claim that we feel is questionable. Filing an amended return in tantamount to claiming that we stand behind the ERC claims and may be liable for fraud we had nothing to do with. CPA’s are bound by Circular 230 and a diligence as to accuracy.
Beware of who you use/used for ERC claims.