Employee Retention Credit (ERC) due to concerns about the risks involved. 

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Here's a recap of the key risks associated with the ERC that

that influenced your decision:

• Complex Eligibility Rules: The rules for determining ERC eligibility are intricate and changed multiple times. This complexity made it easy for businesses to misinterpret the rules and claim the credit when they didn't qualify.

• Aggressive Marketing by Third-Party Promoters: Many companies aggressively marketed their services to help businesses claim the ERC, often with misleading or inaccurate information about eligibility. Some of these promoters charged exorbitant fees or even engaged in fraudulent practices.

• IRS Scrutiny and Audits: The IRS is now heavily scrutinizing ERC claims, and businesses that claim the credit improperly may face audits, penalties, and interest charges.

• Need to Repay the Credit: If the IRS determines that a business was not eligible for the ERC, the business will be required to repay the credit, potentially with interest and penalties.

• Impact on Other Tax Deductions: Receiving the ERC can affect other tax deductions, such as the deduction for wages paid. This requires careful recalculation and adjustments to tax returns.

By recognizing these risks we choose  not to apply for the ERC for clients:

• Financial risks: Repaying the credit with interest and penalties could create a significant financial burden.

• Administrative burden: Dealing with an IRS audit or dispute can be time-consuming and stressful.

• Legal risks: In cases of intentional misrepresentation or fraud, there could be legal consequences.

It's important to stay informed about tax laws and regulations and to make informed decisions based on your specific circumstances. If you have any further questions or concerns about taxes or other financial matters, it's always best to consult with Wealth Management Financial Advisors.