03/08/2023
**Caution- ERC Credit**
The largest fraud in the history of the United States is taking place right now. It’s called the ERC credit. Companies promoting it are charging on average 30% of the credit to apply. Companies are getting the money because the IRS isn’t looking at qualifying up front. These fraudsters promoting the ERC have already made billions, yes with a B, so that’s why they’re able to be so aggressive.
Meanwhile the IRS, the Dept of Justice and Dept of Treasury have already clarified they have ten years to go back and audit these claims because there are so many.
So here’s what is at stake. If you take the money these companies say their team of attorneys will defend you. So the last date to claim ERC is April 15, 2024 for 2020 claims and April 15, 2025 for 2021. Where do you think companies like ERC.com, innovationrefunds.com, governmentaid.com etc are going to be after April 15, 2024 when there’s no more money to be made?
Meanwhile when the audit happens in 2025-2034 and the Gov determines a business wasn’t eligible they’re going after the signer of the return not the preparer. This isn’t PPP where the risk is only income tax. This is payroll trust fund money being played with. There’s a 100% civil penalty, a 20% underreporting penalty, a $10,000 fine and up the five years prison time,10% and 5% per month penalties, plus interest at 9% and rising as the Fed rates rise. Yes, a business can end up paying over six times the amount of the credit. That’s over over ten times the money the business actually got.
Be very careful. Some businesses qualify. Most this is being promoted to do not.
