Connecticut CPAs Warn of Employee Retention Credit Scams

Media Contact: Kirsten Piechota, 860-258-0231, media@ctcpas.org

(Rocky Hill, CT) – The Connecticut Society of CPAs (CTCPA) is warning business owners about pop-up companies offering incorrect and misleading information regarding claiming the Employee Retention Credit (ERC). These third parties may be charging exorbitant fees, claiming to be able to pay employers the credit up-front, or providing incorrect filing deadlines, eligibility requirements, or credit computation information.

The CTCPA reminds business owners to be skeptical of direct solicitations from unfamiliar companies promising tax savings or other offers. In addition to paying unnecessary and exorbitant fees to the third party, taxpayers that claim the credit incorrectly could be required to repay not only the credit but additional penalties and interest to the IRS.

“I encourage all Connecticut taxpayers to seek the assistance of a CPA if they have any questions related to this or any other tax filing issue,” said CTCPA Executive Director & CEO Bonnie Stewart. “CPAs undergo an extensive education, examination, and certification process, and must also adhere to a strict code of professional ethics. A CPA will help you ensure you are filing your claim properly.”

Find a CPA in Your Area

Taxpayers can find a CPA using CTCPA's Find A CPA search engine at www.ctcpas.org/FindaCPA. Search criteria can be entered for location, types of services, firm staff size, and specific industry focus for business clients. The page also features a link to the IRS's Volunteer Income Tax Assistance (VITA) and Tax Counseling for the Elderly (TCE) programs offering free basic tax return preparation to qualified individuals.

Refer to the IRS for Details

Business owners can also refer directly to IRS guidance to learn more about eligibility requirements and claiming the Employee Retention Credit:

For qualified wages paid after March 12, 2020, and before January 1, 2021 – Notice 2021-20, Notice 2021-49, and Revenue Procedure 2021-33,
For qualified wages paid after December 31, 2020, and before July 1, 2021 – Notice 2021-23, Notice 2021-49 and Revenue Procedure 2021-33,
For qualified wages paid after June 30, 2021, and before October 1, 2021 – Notice 2021-49 and Revenue Procedure 2021-33, and
For qualified wages paid after September 30, 2021, and before January 1, 2022 – Notice 2021-49 and Notice 2021-65.

In addition, taxpayer and tax preparers can alert the IRS to questionable third-party vendors using Form 3949-A, Information Referral.

With a membership of more than 6,000 in public practice, business and industry, government, and education, the CTCPA's mission is to advocate on behalf of the accounting profession, foster a professional community, and provide high-quality professional development opportunities.

# # #