The Employee Retention Credit (ERC) was introduced as part of the Coronavirus Aid, Relief, and Economic Security (CARES) Act to help businesses retain employees during the economic downturn caused by the COVID-19 pandemic. While the ERC has been a lifeline for many businesses, it has also unfortunately opened doors for fraudulent claims and misuse.

Kitzer Rochel specializes in whistleblower reward cases and are dedicated to helping those who come forward with valuable information about ERC violations. If you have knowledge of a business or organization that is fraudulently claiming the ERC, you may be eligible to file a claim and receive a significant reward for your efforts.

What is the Employee Retention Credit?

The ERC is a refundable tax credit for businesses that continued to pay employees despite experiencing a decline in revenue due to the COVID-19 pandemic. This credit is designed to encourage businesses to keep their workforce intact during challenging economic times. However, the complexity of the ERC’s eligibility criteria and the significant financial benefits it offers have unfortunately led to instances of fraud and abuse.

Common Violations of the Employee Retention Credit

Some common violations of the ERC include:

• Falsifying Eligibility: Businesses misrepresenting their revenue decline or operational status to qualify for the credit.
• Inflated Payroll Costs: Reporting inflated payroll costs or employees that do not exist to maximize the credit.
• Double Dipping: Claiming the ERC while also receiving benefits from other COVID-19 relief programs, such as the Paycheck Protection Program (PPP), in ways that are not permitted.
• Improper Record Keeping: Failing to maintain accurate records or intentionally altering records to support fraudulent claims.

How Whistleblowers Can Help

Whistleblowers play a crucial role in exposing fraud and protecting the integrity of government programs. If you are aware of any fraudulent activities related to the ERC, you have the power to make a difference. By coming forward with your information, you not only help to ensure that government funds are used appropriately, but you may also be eligible for a financial reward.

Potential Rewards for Whistleblowers

The rewards for whistleblowers can be substantial. Under the IRS Whistleblower Program, individuals who provide information that leads to the recovery of unpaid taxes can receive between 15% and 30% of the total amount collected by the government. This means that if your information helps uncover significant ERC fraud, your reward could be substantial.

Why Choose Kitzer Rochel?

At Kitzer Rochel, we are committed to protecting whistleblowers and ensuring they receive the rewards they deserve. We understand the courage it takes to come forward, and we are here to provide you with the support and expertise you need every step of the way.

***

Reporting ERC violations is not only a civic duty but also an opportunity to receive significant financial rewards. If you have information about fraudulent ERC claims, don’t hesitate to take action. Contact us today for a confidential consultation and let us help you navigate the whistleblower claim process.

Together, we can make a difference and ensure that the Employee Retention Credit program is used as intended – to support businesses and employees in times of need.