Caution: Employee Retention Tax Credit Claims by Third-Party Promoters

Many of our clients are being bombarded with radio advertising, spam emails, and other marketing pitches from third-party companies offering to assist them in claiming the Federal Employee Retention Tax Credit (ERTC) in exchange for fees as high as 30% of the credit.

This article from Accounting Today (registration required) tells a cautionary tale about taking unsustainable, aggressive positions in order to claim the credit, as is being promoted by these pop-up companies that are assertively marketing to businesses. Among the concerns are a five-year audit window and significant penalties for erroneous or fraudulent credit claims. These penalties will be imposed on you, the taxpayer, and it’s uncertain whether these pop-up companies will still exist to provide recourse if the IRS audits ERTC claims in the future.

The Internal Revenue Service (IRS) has addressed these concerns on its website, where more detail is provided about Employee Retention Tax Credit as well as warnings for employers to beware of third parties promoting improper ERTC claims. You can read about it in this news release.

At Cukierski & Associates, we take a careful and comprehensive approach to any ERTC claim prepared by our team, anticipating an IRS audit, and planning accordingly during the credit calculation. We are well-versed in the requirements and qualifications for ERTC, as well as the interplay with PPP forgiveness, having undertaken significant research and continuing education on the subject.

In addition, our fees are very reasonable—certainly not 30% of the credit as some firms are charging. We’ve been in business for over 40 years and will be here to serve you for many years to come.

If you want to see if your business qualifies for Employee Retention Tax Credit, we are happy to look into your qualifications and calculate the credit. To schedule a consultation, please contact Steven Yates (CPA, Partner).