Criminal & Civil Enforcement
IRS ERC Investigations
The IRS’s Office of Promoter Investigations will continue civil and criminal enforcement efforts against unscrupulous promoters and preparers who exploited the Employee Retention Credit.
Get in TouchBy the Numbers
Enforcement Is Already Underway
IRS Criminal Investigation has been pursuing ERC fraud aggressively — and the pace is accelerating.
As of February 29, 2024, IRS Criminal Investigation reported:
Those efforts have produced 12 convictions and 6 sentencings, with an average sentence of 24 months.
Source: IR-2024-78 (Mar. 22, 2024)
Warning Signs
Consider Obtaining a Second Opinion
If the company that assisted with the filing, computation, or determination of your ERC claim did any of the following — the IRS warns these are red flags.
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Advertised that submissions are “risk free.” - Urged you to apply because “there is nothing to lose.”
- Based its fee on the ERC refund amount.
- Determined your eligibility “within minutes.”
- Refused to sign the returns being filed.
- Urged you to apply for all quarters that the credit was available.
- Claimed ERC for all wages paid to every employee on your payroll.
- Stated you can claim the ERC based on a suspension of operations even if your operations were not affected, or if you chose to suspend operations voluntarily.
Worried about who prepared your claim?
If any of these warning signs sound familiar, a tax attorney can review your ERC claim before the IRS does.