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IRS Provides New Process to Report ERC Mills

November 02, 2022

Has a third party advised you to claim the employee retention credit (ERC)? Think twice before accepting the offer—the IRS has just outlined a new process to report these ERC mills. Read on.

Employers, did you read our blog, IRS Warns Employers to Beware of Companies Promoting ERC Services? The IRS is warning you to beware of third parties improperly advising you to claim the employee retention credit (ERC) even if you do not qualify. The IRS has just released a new process to anonymously report these “ERC mills”. Let’s dive in.

What is the ERC?

Check out our blog for the details, but the ERC 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.

What is an ERC mill?

The term ERC mill is used to describe service providers who are self proclaimed “ERC experts” or “consultants” who push employers to claim the ERC even if they do not qualify.

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.

Wondering if an ERC offer is too good to be true? We can help. Contact us.

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