During the COVID quarantine, congress enacted the Employee Retention Tax Credit (“ERTC”). The purpose of the credit was to provide funds for employers whose business activity was reduced or shut down because of COVID.
As a result of this, tax advisors appeared who agreed to help employers file ERTC claims requesting payments in exchange for a portion of the payment that would be received by the employer. A review of these advisors’ activity indicates that many of the claims that they told employers qualified for the credit did not. If these claims are not withdrawn, employers could suffer penalties as high as 75% of the amount of the claim. If they received payment, they would also have to return payment. In addition, they would have to amend the income tax returns for the tax years involved in the claim.
You should have your tax advisor review your claim and if it is defective, it should be withdrawn. We would be happy to review your claim and accomplish the withdrawal of the claim if necessary. We would also prepare and file the amended income tax returns if needed. More information on filing deadline information can be found here.
November 21, 2023
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