Employee Retention Credit: Be Aware of Scammers

April 17, 2023

What is the ERC?

  • The ERC is a refundable credit for businesses who paid employees during Covid.

Who can claim it?

  • Businesses who had a full/partial shutdown due to orders from the government OR
  • Businesses who had a significant decline in gross revenues in 2020 or in 1st, 2nd, 3rd Quarters of 2021 OR
  • Was a recovery startup business for 3rd or 4th Quarter in 2021

What are the requirements for claiming it?

  • Can’t use any wages that were claimed for PPP Loan Forgiveness
  • You must amend the 941 Payroll Reports for any quarters that qualify
  • You must amend the Corporate Business Tax Returns
  • You must amend the Shareholder’s Personal Tax Returns

If you think your business may qualify for the ERC, please reach out to the office and we’ll be glad to look into it. If you’ve had a 3rd party provider complete the ERC for you, please let us know so the appropriate tax returns can be amended.

For further information, please check out the following link:

https://www.irs.gov/coronavirus/employee-retention-credit

**Please be aware of scammers claiming to be specialists in ERC. The IRS has issued warnings about the potential of scams and how to report them. **

https://www.irs.gov/newsroom/irs-issues-renewed-warning-on-employee-retention-credit-claims-false-claims-generate-compliance-risk-for-people-and-businesses-claiming-credit-improperly

Please contact our office if you have any questions or are interested in learning more. Thank you for the opportunity to help you continue to Manage Brilliantly.

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Securities offered through Commonwealth Financial Network, Member FINRA/SIPC. C F Parks Inc is a Registered Investment Adviser. Advisory services and fixed insurance products and services offered by C F Parks Inc are separate and unrelated to Commonwealth.

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