What To Do If the IRS Audits Your ERC Claim - With Tax Attorney Anthony E.

In this video 20-year tax attorney, author the Best-selling book, "IRS Confidential" Anthony E. Parent, Esq. breaks down what Employer Retention Credit (ERC) audits are all about and why many business who actually do qualify for relief still haven't field claims - despite (or because ) of the numerous promoters telling them they qualify for big credits.

The IRS is hiring an training more staff- and because the numbers are so large - ERC refund claims are getting huge attention. And employers are getting very nervous.

So... What to do if you receive a Information Document Request from the IRS for your ERC business grant - get prepared!.

Sop how does to prepare for an ERC audit or respond to an ERC document request?

This is what the IRS is looking for in an audit of an ERC filing

List of employees and owners and related parties (most common exclude owner wages) and all related owners
Payroll logs and journals
Previously filed tax form income tax and original 941s and amended 941x
Notice of suspension of operations during the pandemic period (online database) GO HERE: https://alec.org/article/covid-19-executive-orders-tracker-for-the-50-states/
Gross Receipts for 2019, 2020, 21
PPP application and loan forgiveness application
Evidence that wages were paid for not working - only for large employer (over 500 employees). Does not apply if you are under 500 employees.
Documentation of health plan expenses (if that was part of application)
Aggregation rule - take all companies owned by owner. Aggregation can hurt or help.
Copies of Form 7200 if any advanced payments were made

Source IRS notice 2021-20. https://www.irs.gov/pub/irs-drop/n-21-20.pdf

What to do if you are worried that your ERC isn’t legitimate? What to do if you are unsure if you can file a claim?

Get legal help. Hire an tax attorney to perform an ERC investigation and to draft a ERC opinion letter on your current or potential claim. The ERC program is still open but will close the first half of 2024 and the claims can really make or break many businesses.

If you are concerned about your ERC refund or missing out on ERC claim simply send an email to erc@irsmedic.com and tell us what is going on. We are a law firm so this communication is protected by the attorney client privilege - even if we decide our firm isn’t a great fit for you.

My dad and I graduated law school together in 2002. We started our partnership Parent & Parent and started IRSMedic 2006. I wrote a business best seller on how our tax system really works “IRS Confidential” which is available on amazon. A reason for our clients’ successes over the past 20 years is we look hard to find ways our clients can prevail. We are truly on our clients side. We truly enjoy challenging the IRS. ERC claims are so complicated and consequential and the law is so unsettled there is no question that getting the best ERC advice from an actual experienced tax attorney may be one of the most valuable things right now for your business.
formation Document Request from the IRS for your ERC business grant

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