The Employee Retention Credit (ERC) is like a tax superhero introduced by the US government due to the COVID-19 pandemic. Its job is to help businesses stick with their employees during the pandemic by giving them a refundable tax credit of up to $7,000 for each worker every quarter. Yet, there's a catch – scammers are trying to make a quick buck by faking these credits via ERC phone call scams. Let's dive into how to keep your business safe from these tricks.
Understanding the Employee Retention Credit
Think of the ERC as a helpful hand introduced in March 2020 through the CARES Act. Its mission is to assist businesses in holding onto their workers during the pandemic storm. It offers a refundable tax credit of up to $7,000 for each employee per quarter. Businesses qualify if they've seen their revenue drop due to the pandemic or were shut down by government orders.
The Sneaky Ways of ERC Scams
Imagine scammers dressing up as tax experts or government bigwigs, pretending to help businesses claim their ERC. They might reach out through phone, email, or social media, asking for personal info like bank details and social security numbers. Some even demand payment in advance for their "assistance."
Once they've got your details, they might file a fake ERC claim on your behalf. Then they vanish, leaving with the money.
Protecting Yourself from ERC Scams
To dodge these sneaky scams, remember these points:
Don't Trust Surprise Calls or Emails: If someone suddenly contacts you offering ERC help, don't bite the bait. Don't share personal info with strangers.
Check Caller's Identity: If someone claims they're from the tax world or the government, ask for their info and verify it online. Confirm they're the real deal before spilling any beans.
Never Pay Upfront: Tax pros and government folks will only ask for money after helping you. Don't fall for that trap.
Keep Secrets Safe: Guard your info like a dragon guarding its treasure. Share only with trustworthy folks or groups. And remember strong passwords, and double-check who's trying to get in.
Team Up with Trustworthy ERC Experts: When dealing with ERC, team up with legit ERC experts. Check their background; never give them your secrets without ensuring they're the real McCoy.
What if You've Been Hoodwinked?
If you've been tricked, don't panic. Here's what you do:
Dial the Authorities: Call the IRS and the Federal Trade Commission (FTC) to report the scam. And remember to contact your bank to halt any suspicious transactions.
Lock Things Down: Change your passwords and watch your accounts closely for weird activity. Set up a warning if someone tries anything fishy with your credit.
Teach Your Team: Make sure your squad knows about ERC scams and how to dodge them. Also, amp up your security with double-checks and extra layers of protection.
In a Nutshell
While the ERC is a helpful friend for your business, scammers are lurking in the shadows. Don't let them trick you of your hard-earned money via ERC phone call scams. Be alert for unexpected calls or messages, verify callers, never pay upfront, keep secrets locked, and team up with trusted tax buddies. If scammers strike, call the authorities, lock down your digital turf, and school your team. You can keep your ship steady through these stormy times by being savvy.