Established nearly three years ago as part of a Covid-19 Relief package, ERCs were designed to help businesses deal with the pandemic.

 The new form capability drew praise from the American Institute of.CPAs, which said members had complained of “the rise of non-CPA ERC vendors taking inappropriately aggressive positions”

These vendors are submitting claims on behalf of businesses unknowingly unqualified or qualified for a much smaller credit. Contingency fees of up to 25 percent of the claimed credit are being charged.

A statement from AICPA CEO Barry Melancon, who called the program “hugely beneficial”, said “For more than a year, the AICPA has communicated its concerns to the IRS and the Department of the Treasury regarding the unscrupulous business practices of ERC mills, and we are encouraged by this acknowledgement by the IRS of these questionable business practices around the ERC,