IRS warns business owners of fraudulent tax service specialists in latest Covid relief scam

Small-business owner Scott Volner from Rolla, Missouri, found himself in a financial nightmare after being misled by telemarketers claiming to offer IRS pandemic relief credits. Despite a drop in revenue due to the pandemic, Volner went above and beyond to keep his employees on the payroll. However, he fell victim to a scam that promised him a hefty relief check of $330,000.

Volner signed up with a company that charged him a 10% fee to help him secure the Employee Retention Tax Credit (ERC). Unfortunately, he later discovered that he did not meet the specific criteria for the credit, as it was only available to businesses in states with mandatory shutdowns.

Now, Volner is faced with the daunting task of repaying the money he had already invested back into his business. He expressed his frustration, stating, “It’s going to be a long, hard road to tow to get this all paid back.”

The IRS has acknowledged the widespread abuse of the ERC program, with estimates suggesting that the cost has ballooned to $250 billion, far exceeding the initial projection of $55 billion. The agency is now cracking down on promoters and fraudulent claims, launching audits and criminal investigations to recoup the misappropriated funds.

As Volner and many others grapple with the repercussions of falling victim to deceptive marketing tactics, the IRS is working tirelessly to rectify the situation and prevent further exploitation of pandemic relief programs. The saga serves as a cautionary tale of the dangers of misinformation and the importance of due diligence in navigating financial assistance programs during times of crisis.