My name is Aharon Aryeh, I’m the “ERC guy” here at CHS Payroll. I just want to give you a background of who we are and why we started helping companies apply for the ERC.
We’ve been processing payroll for thousands of clients for 20 years. We always strive to help our clients in every way possible. When the ERC program was introduced, as part of CARES Act, we jumped on this opportunity to help thousands of our clients file for this lucrative credit and get the money they deserve for paying employees during COVID despite heavy COVID restrictions. Yes, many companies are qualified; but identifying these credits
is much more complex. Claiming the credit for a full or partial suspension needs to be substantiated from a direct government order.
Unfortunately, ERC mills have been taking advantage of the ERC program to prey on businesses. They often contact businesses and make false promises about the amount of credit that they are eligible for or the ease with which they can claim the credit. ERC mills may also charge high fees for their services or take advantage of businesses by filing fraudulent claims on their behalf.
Here are some of the most common ERC scams:
- Not substantiating claims: ERC mills claim that all businesses are qualified. They then come back with a number that isn’t based on facts, rather assumptions. You can avoid this by asking for a memo stating the facts and the government
mandates that pertain to the facts. - Charging upfront fees: ERC mills may charge businesses upfront fees for their services, regardless of whether or not the business is eligible for the ERC or how much credit they are due. Protect yourself by making sure the ERC company charges only IF you are eligible.
- Filing fraudulent claims: ERC mills may file fraudulent ERC claims unbeknownst to the business owner. For example, the calculations on the amended form 941-X are not in-line with the 941s. Ask a tax specialist if the 941X’ and 941s line up.
If you are considering claiming the ERC, it is important to be aware of these scams and to take steps to protect yourself. Here are some tips:
- Work with a qualified tax professional: A qualified tax professional will be able to help you determine your eligibility for the ERC, calculate the amount of credit that you are due, and file a claim on your behalf. At CHS we know taxes, payroll & guidelines – we make sure you get the most out of them.
- Do your research: Before working with any company or individual to claim the ERC, be sure to do your research and read online reviews. Read through the IRS websites (links below) and CHS Payroll’s blog posts to get in the know
- Be skeptical of guarantees: No one can guarantee that you will be eligible for a certain amount of ERC credit. Be skeptical of any company that makes such guarantees. Our company never guarantees. If you’re eligible, you pay once you get the refund; if you’re not eligible, don’t worry, we’d love to help you process payroll!
- Don’t give out personal or financial information: Do not give out any personal or financial information to anyone until you have verified their identity and legitimacy.
Here are some additional tips to help you protect yourself from ERC scams:
- Be aware of the latest ERC scams. The IRS regularly updates its website with information about new scams.
- Educate yourself about the ERC program. The IRS website has a wealth of information about the ERC, including eligibility requirements and how to claim the credit.
- Talk to other businesses. Talk to other businesses in your industry to see if they have had any experiences with ERC scams.
- Be patient. Filing an ERC claim can take time. Don’t be rushed into making a decision
about which company or individual to work with.
By following these tips, you can protect yourself from ERC scams and ensure that you receive the credits that you are due.