April 25, 2023

Small businesses and tax-exempt organizations should steer clear of scammers promising big money with the Employee Retention Credit. The only way to claim the Employee Retention Credit is on a federal tax return.

These scammers may lie about your eligibility. They might charge a big fee to "help" you claim the credit. They line their pockets and leave you with big tax issues because if you claim the credit when you don't qualify for it, you have to pay it back.

Misinformation is all over radio, TV, social media and the internet. You may even get emails or phone calls about it. These scammers lure you with promises of fast money and an "easy application process."

If you claim the credit, make sure you qualify. To find details about eligibility and how to claim the credit the right way, visit IRS.gov/erc