Beware of Employee Retention Credit (ERC) Fraud

The podcast episode discusses the dangers of Employee Retention Credit (ERC) fraud and why startups and venture capitalists (VCs) need to be cautious. The ERC was a COVID-era stimulus program that offered tax credits to companies. However, fraudulent individuals and organizations have taken advantage of this program by contacting startups and offering to help them claim the credit. These fraudsters employ high-pressure tactics, exaggerate eligibility requirements, and make false claims to lure startups into participating. To avoid falling victim to fraud or potential legal consequences, startups are advised to consult with reputable CPAs and tax professionals to ensure compliance.