The Employee Retention Credit (ERC) has been a vital relief measure for businesses during the COVID-19 pandemic. Unfortunately, scammers and fraudsters have taken advantage of the program's complexity and introduced fraudulent schemes to cheat businesses and individuals out of their ERC benefits. The IRS has identified ERC scams as one of the "Dirty Dozen" tax scams for 2021, highlighting the importance of partnering with a legitimate CPA firm to avoid falling victim to these fraudulent schemes. This article will discuss the ERC scams' impact, their inclusion in the IRS' Dirty Dozen List, and the importance of partnering with a legitimate CPA firm.

ERC scams typically involve fraudsters requesting personal or business information, such as tax identification numbers or banking information, to file fraudulent claims for the credit. These scams can result in significant financial losses for businesses and individuals, as well as potential legal and reputational consequences.

The IRS' Dirty Dozen List identifies the most prevalent tax scams and schemes that taxpayers may encounter. In 2021, ERC scams made the list due to their increasing prevalence and the potential for significant financial losses. The IRS is committed to identifying and prosecuting ERC scammers to protect taxpayers and ensure the integrity of the program.

Partnering with a legitimate CPA firm is critical to avoiding ERC scams and optimizing the available benefits of the program. A qualified CPA firm can help businesses navigate the program's complexity, identify legitimate claims, and avoid fraudulent schemes. By partnering with a CPA firm, businesses can ensure compliance with tax regulations, minimize risk, and protect their financial stability and reputation. To partner with a legitimate CPA firm, consider the following tips:

1. Research the Firm: Conduct research on the firm's reputation, experience, and credentials. Look for firms with a track record of success and positive client testimonials.

2. Check for Accreditation: Check if the firm is accredited by reputable organizations, such as the American Institute of Certified Public Accountants (AICPA).

3. Check for Licenses: Verify that the firm's CPAs hold valid licenses and are in good standing with state boards of accountancy.

4. Evaluate Communication: Evaluate the firm's communication and responsiveness. A legitimate CPA firm should be available to answer questions and provide guidance throughout the ERC process.

ERC scams are a significant threat to businesses seeking to claim the credit's available benefits. The IRS has identified ERC scams as one of the Dirty Dozen tax scams for 2021, highlighting the need for businesses to partner with a legitimate CPA firm to avoid falling victim to these fraudulent schemes. By researching the firm, checking for accreditation and licenses, and evaluating communication, businesses can partner with a legitimate CPA firm and optimize the available benefits of the Employee Retention Credit.

If you are looking to maximize your tax benefits and potentially receive a significant cash influx, it's time to take action and explore the Employee Retention Credit (ERC). Talley’s team of experts can guide you through the eligibility requirements and application process. Don't miss out on this opportunity - contact us today to get started.