HeadcountERC Launches to Help Navigate Opportunities and Prevent Pitfalls of Employee Retention Credit (ERC)

NEW YORK, Aug. 8, 2023 /PRNewswire/ -- The Employee Retention Credit (ERC) is a valuable tax credit for many businesses that made sacrifices to financially support their employees during the Covid-19 pandemic. While it has proven extremely beneficial for some businesses, it has presented challenges and pitfalls for others.

First, it's not too late to submit most ERC claims. Many businesses don't realize deadlines extend as late as April 2025, providing opportunities for financial relief even years after the Covid-19 pandemic began.

Yet, even for those aware of the opportunities, the ERC system is not without challenges. The IRS has been actively auditing and investigating false claims and encourages reporting of abusive tax promotions. While intentional fraud has been an issue, so have unintentional mistakes. As with many complex tax and financial situations, do-it-yourself (DIY) approaches can backfire and may lead to audits when businesses applying aren't properly aware of the ins and outs of the various requirements.

In other cases, it's the people claiming to be the experts that fuel problems with applications. Some ERC promotion services charge up-front fees – tending to incentivize bulk applications, not success. Boilerplate services missing crucial details can increase the odds of mistakes that lead to rejections or incorrect distribution of funds – which can come back to bite well-intentioned applicants.

Heightening the difficulties, some unscrupulous promoters may take advantage of applicants, offering false hope and treating the ERC like a lottery where anyone qualifies, even if they don't meet eligibility criteria. Other predatory practices include promoters claiming power of attorney over ERC funds distributed, exploiting vulnerable businesses seeking ERC application assistance.

Finally, the ERC program can present security and privacy challenges. Businesses need to be cautious about sharing private info with third parties and ensure sensitive data is protected from misuse.

Such issues highlight the importance of raising awareness about the ERC program's legitimate processes, educating businesses about their rights and options, and encouraging them to seek assistance from reputable sources.

About Headcount ERC
Headcount ERC offers valuable assistance to medium-sized businesses in determining their eligibility, calculating, and filing for the Employee Retention Credit. Leveraging technology, Headcount's dedicated and customized approach helps ensure efficient, private, and accurate delivery of the maximum eligible credit amount. The best part? You pay nothing until you get paid!

For more info, visit www.headcounterc.com

SOURCE HeadcountERC