ERC, or the Employee Retention Credit, is a tax credit offered by the IRS to eligible employers who retained their employees during the COVID-19 pandemic. Unfortunately, scammers are around taking advantage of this credit to defraud unsuspecting businesses. As an employer, it’s essential to know how to avoid ERC tax scams. Here are some tips to help you protect your business. How can you better protect yourself?

Be wary of unsolicited calls or emails: Scammers may pose as IRS agents and contact you via phone, email, or social media. They may request personal or financial information, claiming it’s necessary to claim the ERC tax credit. It’s crucial to verify the identity of the person or organization contacting you and avoid sharing sensitive information.

Use the official IRS website: The IRS provides information about the ERC tax credit on its official website. It’s advisable to use this resource to learn more about the credit and eligibility requirements. You can also find official forms and instructions on how to claim the credit.

Work with trusted professionals: If you need assistance with claiming the ERC tax credit, work with trusted tax professionals, such as CPAs, tax attorneys, or enrolled agents. These professionals can help you navigate the tax code and avoid scams.

Stay updated on the latest scams: Scammers are constantly coming up with new schemes to defraud businesses. It’s essential to stay updated on the latest scams by following official news sources and checking the IRS website regularly. You can also report any suspected scams to the IRS or the Federal Trade Commission (FTC).

Educate your employees: Your employees can also be targets of ERC tax scams. It’s crucial to educate them about the warning signs of scams and how to avoid them. You can provide training or resources to help them identify and report suspicious activity.

Avoiding ERC tax scams requires vigilance and awareness. By staying informed, working with trusted professionals, and educating your employees, you can protect your business from fraudulent activity and claim the ERC tax credit legitimately.