The annual Dirty Dozen list of tax scams has been updated by the IRS to include promoter claims surrounding Employee Retention Credits (ERC) that have been circulating widely. These claims can be based on inaccurate information related to eligibility and calculation of the credit. It is important to note that eligible taxpayers can claim the ERC on an original or amended employment tax return for qualified wages paid between March 13, 2020, and December 31, 2021.
IRS Commissioner Danny Werfel expressed deep concern regarding the aggressive marketing of these credits and emphasized the need for businesses to exercise caution before filing a claim. While the ERC has provided financial relief to countless businesses, unscrupulous promoters are misleading people and businesses into believing they are eligible for these credits. The IRS is actively conducting criminal investigations and audits related to false claims and urges honest taxpayers not to get caught up in these schemes.
The abusive promotion of ERC is just one of 12 scams and schemes highlighted on day one of the IRS’s annual Dirty Dozen campaign. Taxpayers and the tax professional community should be aware of these scams and take measures to protect their personal and financial information. For more information, please visit the Dirty Dozen page on the IRS website.