Employee Retention Credit and take necessary steps to avoid making improper claims

We are excited to inform you that the IRS has taken note of the increased popularity of the Employee Retention Credit (ERC), also known as the Employee Retention Tax Credit (ERTC). However, we want to ensure innocent businesses and payroll professionals are correctly informed by aggressive marketers who falsely claim the credit. While these promoters may receive large fees, the risk of rejecting claims or repaying the credit is not worth it. Let's ensure that we all claim the ERC responsibly and legitimately.

The Employee Retention Credit (ERC) is a fantastic opportunity for businesses that the COVID-19 pandemic has impacted. This refundable tax credit allows companies to continue paying their employees while receiving financial assistance. It's important to note that the ERC is not available to individuals.

To avoid any issues down the line, the IRS wants to remind everyone that improperly claiming the ERC can lead to penalties and interest. It's always better to avoid getting scammed and ensure you follow all guidelines correctly. A business or tax-exempt group could find themselves in a much worse financial position if they must pay back the credit than if they never claimed it in the first place.

Luckily, the IRS has released news release 2023-105, which provides:

• Helpful information on protecting yourself.

• Properly claiming the ERC.

• Recognizing warning signs of aggressive ERC marketing.

We encourage anyone eligible for this credit to take advantage of it but to do so responsibly and with the proper guidance.

SkyBiz Services' team seeks truth from falsehoods. Subscribe to our blog and follow us on Instagram, Facebook, and LinkedIn.