In prior communications, we have warned dealers to tread very carefully down the ERC path, especially if one’s actual eligibility may be in question.
Last month the Internal Revenue Service issued a renewed warning urging people to carefully review the Employee Retention Credit (ERC) guidelines before trying to claim the credit. Apparently, certain promoters continue pushing ineligible people to file.
The Acting IRS Commissioner recently stated:
"While this is a legitimate credit that has provided a financial lifeline to millions of businesses, there continue to be promoters who aggressively mislead people and businesses into thinking they can claim these credits. Anyone who is considering claiming this credit needs to carefully review the guidelines. If the tax professional they're using raises questions about the accuracy of the Employee Retention Credit claim, people should listen to their advice. The IRS is actively auditing and conducting criminal investigations related to these false claims. People need to think twice before claiming this."
- Read the recent IRS news release in its entirety here. Please note that this news release links to detailed IRS warnings issued in the fall of 2022.
- Read the NADA blog "A Guide to Claiming the Employee Retention Tax Credit" here.
- General questions regarding the ERC may be directed to firstname.lastname@example.org.
As always, we urge our members to seek competent guidance from one’s accounting professionals when exploring the ERC or any other tax matter.