Employee Retention Credit (ERC) Audit Defense

The IRS has significantly increased enforcement of Employee Retention Credit claims in recent years. Many businesses are now facing audits or repayment demands related to ERC filings. This is particularly true for businesses that filed their ERC claims through aggressive ERC promoters. ERC controversies or ERC audits often start with Letter 105-C (ERC Disallowance) or Letter 6612 (ERC Audit Information Request). An experienced ERC audit attorney can help respond to an ERC Disallowance or ERC Audit Information Request. Involving tax counsel improves chances to resolve an ERC audit favorably.

Common Issues

  • Eligibility criteria
  • Wage qualification
  • Documentation requirements

ERC Audit Defense Process & Strategy

  • Consider engaging an experienced ERC tax controversy attorney as soon as possible.
  • Don’t ignore IRS correspondence, be proactive, meet deadlines or obtain extensions.
  • Carefully evaluate eligibility to assess risk and develop audit management strategy.
  • Prepare supporting documentation and respond to IDRs.
  • Obtain audit closure confirmation, negotiate (settlement, repayment plan, penalty abatement, etc.), or prepare for IRS Appeals.

Contact an experienced ERC tax controversy lawyer