Sunday, September 3, 2023

🚨 Fraud Warning

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It seems like every Tom, Dick, and Harry are suddenly so-called “ERC Experts” these days, Esther. Yes, there are legitimate companies and CPA’s who help clients and are not out to scam you, but there are also the fraudsters whose intent is to do just that- fraud others. In fact, the IRS issued a warning about this on March 20, 2023. 

 

Whether you work with us or not, please be aware of these red flags and scams that are working their way through the system when it comes to your Employee Retention Tax Credit. We don’t want to see anyone be misled or being taken advantage of regarding this program that is in place to help businesses.

 

To recap, the Employee Retention Tax Credit is for business owners who kept W2 employees on the books in 2020 and 2021 and could be entitled to a retroactive payroll tax refund by amending the original Form 941 (Quarterly Payroll Tax Information). This credit comes back to you in the form of quarterly checks. This is money and taxes you’ve already paid during a qualifying event such as a revenue reduction, supply change disruption, and/or a full or partial shutdown. These are just a few of the Qualifying Events that are used when determining eligibility.

 

1.   Emails, calls, and/or texts by others impersonating the IRS or a representative of the US Government. The IRS will never initiate contact with taxpayers by email, text, or social media.

2.   Someone telling you that you qualify before they even review the necessary documentation.

3.   Telling you they can get you a higher refund without checking your paperwork or qualifications.

4.   Being promised money when you do not qualify.

5.   The 3rd party is not doing any due diligence with you to ensure you do qualify.

6.   Charging large fees up front.

7.   They have no website.

8.   They have no phone number.

9.   You do not meet with the CPA.

10. Small or no online presence with the 3rd party you are working with. 

11. Communication only via text, emails, or another chat app.

12. The preparer refuses to sign as the preparer on the Form 941X.

13. They do not offer Audit Defense Services pertaining to your ERC filing.

 

Because it could take 3, 6, or even 10 months before the IRS starts to issue checks, Esther, many businesses are patient while the 3rd party skips town!

 

We hope this helps you in your efforts to claim your ERC for your company. Please feel free to Schedule an Appointment with Us should you have any questions, or if you'd like to discuss your own eligibility.

 

Sincerely,

The HD Group

(602) 878-7696

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