Learn how to mitigate ERTC risks
How to Avoid ERTC Scams
Comprehending the fundamental aspects and potential hazards linked to an ERTC claim is crucial to safeguarding your business. Regrettably, many ERTC companies sidestep discussing the liability and accountability concerns while filing claims. In fact, some may even surreptitiously include terms in their service agreements that pose significant risks to you, the business owner, without your knowledge. However, at Accelerate America, we approach things differently.
This 2-minute read may save you hundreds of thousands of dollars in ERTC audit penalties and fees…
Why do some ERTC providers charge as low as 10% or as high as 30%? A more expensive package may be bloated with services you don't need, while an inexpensive package may be lacking critical protections that put your business at risk.
Here’s the trap many other ERTC providers lure unsuspecting businesses into:
You’ve heard about the ERTC, and now you’re searching for a reputable company to help you claim the funds you’re owed…
You find an ERTC website – they say: “There are MANY ways to qualify for the ERTC – and YOU likely do!”
This is technically true, BUT… they leave out some fine print…
You decide to move forward and have them file for you … They ask you a few questions… and… Congratulations! You’re told you qualify!
You submit a few verification documents, they have you sign a few forms…
That’s it!
In a few months, you receive your money.
Here’s why such a simple, straightforward process is positioned to backfire with a vengeance when the IRS begins auditing completed ERTC claims, and why it is important for business owners to fully understand the fine print and risks associated with their claim.
Most ERTC companies will never tell you that:
- They never conducted research into your pandemic hardship nor did they assemble the necessary proof to support your ERTC claim, in fact, without knowing it – you actually signed an agreement releasing them of this responsibility, and assuming it for yourself! This is known as an “attestation of eligibility”, meaning you certify that you are eligible for the ERTC (even if you don’t know the requirements).
- They made you 100% responsible for their work; if the calculations they submitted to the IRS on your behalf are wrong, it’s now your fault – and you unknowingly signed a document agreeing to accept THEIR responsibility.
- No licensed CPA or Tax Attorney calculated your ERTC benefit, but rather that it was done using automated software which is prone to errors. It doesn’t matter though, you unknowingly signed a document accepting responsibility for all errors.
- Although their website may contain guarantees of audit protection & reimbursement in the event of an issue, it’s not in their service agreement. After all, if it’s not in their service agreement, you may have to sue them to actually hold them to their word.
At the Accelerate America program, we understand that many ERTC providers may not properly document claims or explain business owners’ responsibilities in the ERTC process. This can result in serious consequences for businesses, including audits and penalties.
One critical responsibility that we prioritize is claim documentation, which includes the necessary documents required by the IRS to support your claim. We recognize that these guidelines are meticulous and specific, and we take care to ensure that our clients understand their obligations.
For example, if your business was shut down due to a government order, you cannot claim the entirety of the ERTC credit. Proper documentation is necessary to determine the amount of the credit you can claim based on shutdowns.
In addition, many business owners may not understand what happens when the IRS asks for clarification after dispensing the refund, and they realize that their understanding of the ERTC was incorrect. Our team is committed to educating and guiding our clients through every step of the process, ensuring that they have a clear understanding of their responsibilities.
We do not take a “one and done” approach to the ERTC process. Instead, we work with our clients to ensure that they understand what they’re signing and what their responsibilities to the IRS are. We believe that this approach is crucial to ensuring that our clients receive the full benefits of the ERTC while avoiding any potential negative impact.