As practitioners conduct their audit engagements, some are concluding that certain clients were not eligible for, or eligibility was questionable for, employee retention credits (ERCs). Social media anecdotes which are consistent with those seen by and independently reported to CPEA staff, indicate that entities are being
approached by tax credit companies with aggressive positions in which “virtually every business” under 500 employees is eligible to claim the ERC. Some tax credit companies charge a fee of 20% of the ERC.