As part of its efforts to combat ERC fraud, the IRS also published a list of red flags to look out for when considering an ERC consultant or firm. Those warning signs include:nnUnsolicited calls or advertisements mentioning an easy application process.nStatements that the promoter or company can determine ERC eligibility within minutes.nLarge upfront fees to claim the credit.nFees are based on a percentage of the refund amount of the Employee Retention Credit claimed. This is a similar warning sign for average taxpayers, who should always avoid a tax preparer basing their fee on the size of the refund.nPreparers seeking anonymity by refusing to sign the ERC return being filed by the business as well as supplying their identifying information and a tax identification number. Similar to ghost preparers, this limits the risk to just the taxpayer claiming the credit.nAggressive claims from the promoter that the business receiving the solicitation qualifies before any discussion of the group's tax situation. In reality, the Employee Retention Credit is a complex credit that requires careful review before applying.nnUnscrupulous promoters may lie about eligibility requirements, including refusing to provide detailed documents supporting their computations of the ERC. In addition, those using these companies could be at risk of someone using the credit as a ploy to steal the taxpayer's identity or take a cut of the taxpayer's improperly claimed credit.