The IRS has issued a warning to businesses to be on alert for Employee Retention Credit (ERC) mills. These scammers dangle the prospect of a large tax refund by claiming the ERC, often charging a large up-front fee based on the amount of the refund. They omit the fact that wage deductions claimed on a company’s federal income tax return must be reduced by the amount of the credit. Needless to say, the IRS advises taxpayers to avoid filing erroneous claims for the ERC. Further, businesses should submit amended returns if qualified wages were deducted on income tax returns prior to filing employment tax returns. For more information from the IRS: https://bit.ly/3kUN9Te
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