Skip to Content

Experienced Defense Counsel for Businesses Targeted in ERC Audits

The Internal Revenue Service (IRS) is continuing to target businesses suspected of fraudulently claiming the Employee Retention Credit (ERC). The ERC proved highly susceptible to fraud both during and after the COVID-19 pandemic, and the IRS has repeatedly warned of promoters luring business owners into ERC filing scams. However, the IRS has also made clear that businesses are ultimately responsible for their filings.

While the IRS has created options for eligible businesses to withdraw their ERC claims, it is also using audits to uncover and recoup fraudulent ERC refunds. These audits can present substantial risks for businesses and their owners. We represent businesses that are facing substantial exposure risk in IRS audits. If revenue agents are looking into your business’s ERC claim (or claims), we encourage you to request a confidential consultation at Brown, PC

Defending Against an IRS Audit Targeting ERC Fraud

If the IRS is auditing your business and you have concerns about facing liability for ERC fraud, an informed and strategic defense is critical. When you engage our firm to handle your business’s audit, we will work quickly to answer key questions such as:

  • Did Your Business Improperly Claim the ERC? In order to determine how best to defend against the IRS’s audit, you first need to know whether your business has improperly claimed the ERC. This requires a careful and comprehensive legal and factual analysis.
  • How Much of Your Business’s ERC Claim is Unlawful? If your business improperly claimed the ERC, it will next be necessary to determine how much of your business’s ERC claim is unlawful. If your business was eligible for the credit, but not the full amount of the credit (or credits) claimed, this fact will likely play a major role in your business’s audit defense strategy.
  • What Documentation (Whether Helpful or Harmful) is Available? When facing an IRS audit, it is also important to know what documentation is available. This includes both documentation that you can use to defend against the audit and documentation that the IRS may be able to use to prove ERC fraud.
  • Should You Withdraw Your Business’s ERC Claim? Businesses that are facing IRS audits have the option of withdrawing their ERC claims, as long as they are generally eligible to do so. But, filing for withdrawal can present risks of its own, so an informed decision is required.
  • Should You Settle with the IRS? Based on the facts and documentation at hand, should you settle with the IRS? Here, too, while this might be your best option, it is imperative that you work with experienced counsel to weigh all of the options you have available.

Based on the answers to these decisions (among others) we will help you make informed decisions about your next steps. We will then interface with the IRS on your behalf throughout the audit process; and, if necessary, we will prepare to challenge the outcome of your business’s ERC audit on appeal.

Request an ERC Audit Defense Consultation at Brown, PC

If you need to engage experienced defense counsel for a high-stakes ERC audit, we invite you to get in touch. To request a confidential consultation at Brown, PC, please call 888-870-0025 or contact us online today.