[ad_1]
FARGO — The IRS and a local CPA are warning businesses about a new tax credit scam.
Firms are cold calling business owners around the country falsely claiming they qualify for an Employee Retention Credit. That credit is one of the relief efforts set up during the pandemic, though many businesses do not qualify.
The firms will tell business owners they can get the tax credit and ask for a cut, sometimes at exorbitant fees.
Devon Liljenquist, a CPA with Arrow Advisors, said it is impacting many of his business owning clients across the metro. Those who fall victim to the scam put themselves at risk of being audited.
“None of these companies have offices here,” Liljenquist explained. “They’re from outside of the state. They’re calling you, you’ll never see them in person. Go to somebody who’s a CPA, an enrolled agent, somebody who’s qualified to do this kind of work, and who has a location in your state.”
“They say you qualify, they claim the credit, you get paid, and once the IRS has enough staff to audit this, they’ll be nowhere to be found and these clients will be left holding the bag,” he added.
Liljenquist said the IRS recently assigned about 300 agents to focus solely on auditing false Employee Retention Credit claims.
[ad_2]
Source link