Employee Retention Credit (ERC) Archives

Up to 90% of ERC Claims Are Potentially Fraudulent Forcing IRS to Extend Freeze

Bailey Scarano Blog, Tax & Money Tips / By Bonnie Buol Ruszczyk

Originally part of the 2020 pandemic relief efforts, the ERC was meant to alleviate financial pressures for businesses by subsidizing wages up to $26,000 per employee for retained workers during COVID-19 related downturns. Despite the program’s intent to distribute $55 billion over 10 years, the IRS discovered widespread abuse, leading to an unplanned payout of […]

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Warning Signs of Questionable Employee Retention Credit Claims

Bailey Scarano Blog, Tax & Money Tips / By Bonnie Buol Ruszczyk

The IRS has issued a warning to small businesses regarding potential issues with Employee Retention Credit (ERC) claims as the March 22, 2024 deadline for the ERC Voluntary Disclosure Program approaches. Seven suspicious warning signs have been identified based on feedback from tax professionals and compliance personnel. These signs may indicate erroneous claims and could lead to IRS scrutiny. The ERC Voluntary Disclosure Program allows businesses to rectify incorrect claims by repaying just 80% of the amount claimed. Taxpayers who

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Man's Hand Examining Fraud Word On Financial Report Through Magnifying Glass

IRS Introduces Option to Withdraw Employee Retention Credit Claims

Bailey Scarano Blog, Tax & Money Tips / By Bonnie Buol Ruszczyk

If you own a business, we are sure you have also gotten emails, phone calls, and even texts from companies promising to help you to apply for – and receive – employee retention credits. While there are legitimate reasons for some businesses to apply, many companies fell for “too good to be true” offers of

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A Page with info about employee retention tax credit and pen.

ERC Fraud so Rampant IRS Halts Processing Claims

Bailey Scarano Blog / By Bonnie Buol Ruszczyk

Last April, we discussed how the proliferation of Employee Retention Credit (ERC) scams prompted the IRS to add them to their annual Dirty Dozen list of tax scams. Now, six months later, there has been an alarming surge in ERC claims, with nearly 600,000 filed in the past 90 days, likely containing fraudulent or ineligible

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ERC Scams Added to IRS Dirty Dozen

Bailey Scarano Blog, Tax & Money Tips / By Bonnie Buol Ruszczyk

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

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Tax Incentives Available to Manufacturing Companies

Bailey Scarano Blog, Tax & Money Tips / By Bonnie Buol Ruszczyk

Those in the manufacturing industry bring vital products and jobs to Connecticut. Most were hit hard by the pandemic as well. As you start thinking about your 2021 taxes, don’t miss out on a variety of tax incentives available to manufacturers. While you may not qualify for all of them, it is well worth your

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