The ERC is a refundable tax credit for businesses who continued paying wages to employees while they were shut down due to the COVID-19 pandemic or if they had substantial declines in gross receipts from March 2020 through December 2021.

The IRS is warning employers to be cautious about 3rd party companies advising businesses to claim the ERC when the businesses may not qualify. Some third parties are taking improper positions related to taxpayer eligibility for and computation of the credit.

CLH encourages employers to be cautious of advertised schemes and direct solicitations promising tax savings that are too good to be true. It is expected that the IRS will audit ERC claims aggressively. Improperly claiming the ERC could result in taxpayers being required to repay the credit along with penalties and interest.

Please reach out to CLH with any questions or concerns regarding the ERC. We are happy to provide initial analysis regarding the ERC eligibility and prepare amended payroll tax returns to claim ERC credits.