WASHINGTON -- The Internal Revenue Service today warned employers to be wary of third parties who are advising them to claim the Employee Retention Credit (ERC) when they may not qualify. Some third parties are taking improper positions related to taxpayer eligibility for and computation of the credit.

These third parties often charge large upfront fees or a fee that is contingent on the amount of the refund and may not inform taxpayers that wage deductions claimed on the business’ federal income tax return must be reduced by the amount of the credit.

If the business filed an income tax return deducting qualified wages before it filed an employment tax return claiming the credit, the business should file an amended income tax return to correct any overstated wage deduction.

Businesses are encouraged to be cautious of advertised schemes and direct solicitations promising tax savings that are too good to be true. Taxpayers are always responsible for the information reported on their tax returns. Improperly claiming the ERC could result in taxpayers being required to repay the credit along with penalties and interest.

What is the ERC?
The ERC is a refundable tax credit designed for businesses who continued paying employees while shutdown due to the COVID-19 pandemic or had significant declines in gross receipts from March 13, 2020, to Dec. 31, 2021. Eligible taxpayers can claim the ERC on an original or amended employment tax return for a period within those dates.

To be eligible for the ERC, employers must have:

• sustained a full or partial suspension of operations due to orders from an appropriate governmental authority limiting commerce, travel, or group meetings due to COVID-19 during 2020 or the first three quarters of 2021,
• experienced a significant decline in gross receipts during 2020 or a decline in gross receipts during the first three quarters of 2021, or
• qualified as a recovery startup business for the third or fourth quarters of 2021.

As a reminder, only recovery startup businesses are eligible for the ERC in the fourth quarter of 2021. Additionally, for any quarter, eligible employers cannot claim the ERC on wages that were reported as payroll costs in obtaining PPP loan forgiveness or that were used to claim certain other tax credits.

To report tax-related illegal activities relating to ERC claims, submit Form 3949-A, Information Referral. You should also report instances of fraud and IRS-related phishing attempts to the Treasury Inspector General for Tax Administration at 800-366-4484.

Go to IRS.gov to learn more about eligibility requirements and how to claim the Employee Retention Credit :

• For qualified wages paid after March 12, 2020, and before Jan. 1, 2021 – Notice 2021-20, Notice 2021-49, and Revenue Procedure 2021-33
• For qualified wages paid after Dec. 31, 2020, and before July 1, 2021 – Notice 2021-23, Notice 2021-49 and Revenue Procedure 2021-33
• For qualified wages paid after June 30, 2021, and before Oct. 1, 2021 – Notice 2021-49 and Revenue Procedure 2021-33
• For qualified wages paid after Sept. 30, 2021, and before Jan. 1, 2022 – Notice 2021-49 and Notice 2021-65

Metairie, La. – The Louisiana Restaurant Association Greater Baton Rouge Chapter will host its inaugural Oktoberfest presented by Mockler Beverage Company and Anheuser-Busch, Thursday, October 13, 2022 from 6-9 p.m. at Pointe Marie, 14200 River Road in Baton Rouge. The event will feature German-inspired cuisine from area restaurants and beers from local breweries, live music by The Chris Leblanc Band, live auction and games. Attendees must be 21 years or older to attend.
 
“We are pleased to offer our community a new event filled with familiar Oktoberfest fun,” said Jeff Conaway, LRA GBR Chapter President. “This is a fundraising event for a cause that is near and dear to our members – Louisiana ProStart. Our area has 19 high school culinary arts and restaurant management programs designed to attract young people to rewarding careers in our restaurants.”
 
Annually, the LRA GBR Chapter raises funds through two events. In the Spring, the GBR Chapter hosts a Golf Tournament which yields $60,000 for the LRA Education Foundation, which administers ProStart in Baton Rouge and across the state—61 programs in total.
 
LRA member restaurants participating and menu items are:

• Jubans--Speckknödel (bacon bread dumplings) w/ Sweet and Sour Red Cabbage, and beer mustard sauce
• City Slice—Pepperoni Latkes & Soft Pretzels
• Cecelia Creole Bistro—Streuselkuchen (cake)
• Kalurah St. Grill—Alligator Beer Bratwurst Corn Dog with Charred Red Cabbage & Beer Mustard
• Iverstine Farms—Beer Poached Brat Bites on a Pretzel Bun Crostini with Fermented Sauerkraut
• L’Auberge—German-style Meatball Sandwich w/ Dijon Mustard Gravy & Sauerkraut
• Overpass Merchant—Shredded Marzen Braised Pork Shank with Creamy Gouda Polenta
• Walk-On’s Sports Bistreaux—Bread Pudding
• Country Pleasin’ Sausage—Blueberry Sausage
• VIP Area: Ruffino’s—Charcuterie; and Fred’s Lounge—hosted bar

 
Attendees will also enjoy a complimentary beer stein in which to sample:

• Karbach Brewing Company – Karbachtoberfest
• Goose Island Brewing – Oktoberfest
• Golden Road Brewing—Oktoberfest
• Widmer Brothers—Oktoberfest
• Breckenridge Brewery--Oktoberfest

 
In addition, there will be a live auction for attendees to bid on a dine around package which includes: gift cards to 25 area restaurants; a tailgate package from Mockler Beverage Company and Superior Grill; a chef’s table for 10 people with wine from L’Auberge Baton Rouge; and a Chef’s Table for 6 people at Ruffino’s. The event features a German-style costume contest, a stein holding contest and a barrel roll for attendees to participate for a chance to win great prizes.
 
Tickets are $50 per person in advance. VIP tickets are available for $75 per person and includes a VIP area with open bar and a complimentary beer stein by City Group Hospitality.
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PURCHASE TICKETS HERE
 
Sponsors are: Mockler Beverage Company and Anheuser-Busch, Ecolab, Louisiana Seafood, Louisiana Travel, L’Auberge, City Group Hospitality, First Horizon Bank, Repcon, Inc. and Country Pleasin’ Sausage.
 
For more information, contact Britney Ford at bford@lra.org or (225) 240-7189.