Ghost ERC Claim Preparation

You’ve heard the radio spots for Employee Retention Credit (ERC) refunds and if you’ve been online and searched for ERC information, you’ve probably been tagged and are now being served advertising from a host of companies marketing their services with ready-made calculation tools, lightning fast processing, and promises that your business qualifies for the ERC refund. Tread carefully.

So, what is a ghost preparer? The IRS advises taxpayers to avoid preparers who refuse to sign returns. Like ghosts, they try to limit their involvement visibility in the preparation of tax forms, like the ERC claim form (941X). They will print the return and get the taxpayer to sign a clean copy of the tax form and submit it without signing. However, by law, anyone who is paid to prepare must sign and include their Preparer Tax Identification Number (or PTIN).

“Not signing a return is a red flag that the paid preparer may be looking to make a fast buck by promising a big refund or charging feesbased on the size of the refund”

While not a full list, here are some things to watch for

·        A promise of “free money” for a refund without gathering the required documentation about the business

·        Not signing the tax forms as the paid preparer

·        Transparently explain how your business qualifies

·        An unwillingness to provide audit support if the IRS comes calling

·        Is it a pop up business that will begone when the program ends

How the IRS views it

This may sound a little heavy handed, but taxpayers are always responsible for the information reported on their tax returns.  Which means you are legally responsible for the accuracy of all the information on your tax return, including schedules, forms, and supporting documentation. So, making an ERC claim refund is like amending your income tax return and under penalty of perjury you, as the business owner, will sign to that. That said, the last thing you want is for the IRS to audit your claim and your ghost preparer is nowhere to be found.

Who should I contact to help me with my ERC claim?

Filing out a proper ERC claim is more than just filling out a form or making some payroll calculations. It requires engaging with licensed professionals, like a CPA and/or a Tax Attorney who understand the complexities of the IRS guidelines, are up to date on the ERC claim publications, and through careful analysis of your business situation and review of supporting documentation, can substantiate your ERC claim.  Most importantly, the licensed professional will stand behind your claim with audit support and sign the return as preparer.  

If you believe that your business may be eligible for the ERC refund, contact a trusted professional who is well versed in both tax accounting and legal representation or feel free to call us at (888) 527-1802 andwe’ll gladly connect you with licensed CPAs and Tax Attorneys with a national footprint who specialize in ERC claim filing.

Footnote

You can view the full IRS release on ghost prepares at: https://www.irs.gov/newsroom/beware-of-ghost-preparers-who-dont-sign-tax-returns

This post offers professional opinion and should not be construed as professional or legal advice. Please consult a licensed professional about your particular business situation.