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Employee Retention Credit Schemes: On the Radio, Through the Mail and In Your Inbox!

January 31, 2023

“If you retained employees during COVID, you may qualify for cash from the IRS…This is not a loan, rather a tax credit so you don’t pay it back” Sounds too good to be true? It probably is! Here’s what to look out for.

Have you received an email with a subject line along the lines of “Act fast for cash, before it’s too late! You may qualify for the Employee Retention Credit (ERC)”? It is more than likely a solicitation from an ERC mill, which are described as money-making schemes that aggressively assist you in claiming the ERC which under IRS audit could put you on the hook to repay the credit, along with penalties and interest! We dive into an example of an ERC mill solicitation here.

ERC refresher

The Employee Retention Credit was created under the CARES Act to provide financial relief to employers who kept workers on the payroll during the COVID-19 pandemic. Subsequent legislation expanded and extended the ERC through 2021.

More about ERC mills

Check out our blog, IRS Warns Employers to Beware of Companies Promoting ERC Services for more background information on ERC mills.

Here is an example of an ERC mill solicitation received by us :

Hi Susan,

You may not be aware that hundreds of millions of dollars are still available to businesses through the Employee Retention Credits (ERC) portion of the CARES Act? In fact, you can qualify for up to $26,000 per employee. If your business retained employees during COVID, you likely qualify for money from the IRS!

This is not a loan rather a refundable tax credit from the IRS!. What's more, it doesn't cost you anything to figure out if and what you qualify for. On average, companies we work with receive anywhere from $5K - $26K per employee, even if they had PPP loans that were completely forgiven!.

Click on the link below and share some basic information and one of our representatives will reach out to provide more details and get started on your refund claim.

You may be thinking this is too good to be true and that this federal money has your company's name on it but remember PPP loans!. The majority of companies we work with are due money, and we'll make sure you get it!!!


Robert Smith
Co-Founder, Acme ERC Company

How do you report an ERC mill?

Using Form 3949-A (previously used to report fraud anonymously), individuals, firms and CPAs can report questionable ERC mills.

You might be thinking—"They have my PPP loan information, so it must be legitimate?”

Remember, PPP loan information is available to the public, so many of these ERC mills are likely using that information to solicit businesses and make it appear as if they have in-depth ERC expertise and special knowledge regarding your company’s eligibility.

Questions? We can help.

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