5 Newly Announced Signs of an Incorrect ERC Claim

5 Newly Announced Signs of an Incorrect ERC Claim

The IRS has identified these additional five common signs that have been seen on ERC claims which they are denying:

• Essential businesses during the pandemic that could fully operate and didn’t have a decline in gross receipts.
• Business unable to support how a government order fully or partially suspended business operations.
• Business reporting family members’ wages as qualified wages.
• Business using wages already used for Paycheck Protection Program loan forgiveness.
• Large employers (100+) claiming wages for employees who were providing services.

The IRS advises taxpayers to work with a trusted tax professional knowledgeable about the complex rules surrounding the Employee Retention Credit (ERC). Tax professionals can help businesses recheck their claims; this is especially important for those who used a promoter to file claims instead of a tax professional.

If you're a business owner in the New York Metro Area and need help making the best decisions for your business, request a consultation with our experienced accountants today. We look forward to providing you service.