ERC Audit Representation: What to Expect
Contents
- 1 ERC Audit Representation: What to Expect
- 2 You’re Being Audited – Now What?
- 3 What Exactly is an ERC Audit?
- 4 The Basics
- 5 The Dreaded Correspondence Audit
- 6 The Escalating Audit Levels
- 7 Why You Need an ERC Audit Expert in Your Corner
- 8 The IRS Doesn’t Play Games
- 9 We Know the ERC Inside and Out
- 10 We’ll Handle Every Aspect of Your Audit
- 11 What to Expect During an ERC Audit
- 12 The Opening Salvo
- 13 The Document Deluge
- 14 Auditor Interviews and On-Site Visits
- 15 The Potential Outcomes
ERC Audit Representation: What to Expect
You’re Being Audited – Now What?
So, you claimed the Employee Retention Credit (ERC), and now the IRS wants to take a closer look, huh? Don’t panic – but, take a deep breath. Getting that dreaded “you’re being audited” letter is never fun, we get it. But, here’s the thing – an audit doesn’t automatically mean you did something wrong. The IRS is just doing its job, verifying claims to make sure everyone plays by the rules. And with the ERC being a pretty big deal, involving billions in tax credits, you can bet they’ll be extra diligent. But, that’s where we come in. At Spodek Law Group, we live for this stuff. Audits, tax controversies, you name it – we’ve seen it all. And we know exactly how to navigate the choppy waters of an ERC audit to get you the best possible outcome. So, let’s dive in, shall we?
What Exactly is an ERC Audit?
The Basics
An ERC audit is simply the IRS’s way of double-checking that you were actually eligible for the Employee Retention Credit, and that you calculated the amount correctly. They’ll want to see documentation proving:
- Your business operations were fully or partially suspended due to a COVID-19 government order
- You experienced a significant decline in gross receipts during the pandemic
- You properly calculated the qualified wages used for the credit
- Your employees met the eligibility criteria
In other words, they need you to back up every single claim you made on those ERC forms.
The Dreaded Correspondence Audit
For most ERC audits, the IRS will kick things off with a “correspondence audit.” Basically, they send you a letter (the one that made your heart skip a beat) requesting a boatload of documents and information related to your ERC claim.From payroll records to receipts and everything in between, they want it all. And they’ll give you a strict deadline to get it all shipped off to them, usually around 30 days.
The Escalating Audit Levels
If the IRS isn’t satisfied with your correspondence audit response, well, things can escalate quickly. They might bring you in for an in-person interview or even send an agent to your place of business for a good old-fashioned field audit. At this point, the gloves are off. The IRS will be digging deep, looking under every rock and behind every filing cabinet for any shred of evidence that you didn’t play by the rules. And if they find something? Well, let’s just say you could be looking at having to repay that ERC money with interest and penalties. Maybe even some criminal charges if the situation is really ugly. But, let’s not get ahead of ourselves here. With the right representation, you can absolutely sail through an ERC audit without any major hiccups. Which brings us to…
Why You Need an ERC Audit Expert in Your Corner
The IRS Doesn’t Play Games
Here’s the harsh truth – the IRS is not your friend in an audit situation. Those agents have one goal: protecting the government’s interests (i.e., making sure you pay your fair share of taxes).” So, if you try to go it alone against these seasoned pros, the odds aren’t in your favor.
We Know the ERC Inside and Out
But, when you bring in an experienced ERC audit lawyer from a firm like Spodek Law Group, you immediately level the playing field. We literally wrote the book on the Employee Retention Credit and all the related rules and regulations.We know every loophole, every gray area, every argument the IRS might try to make – and how to counter it. While the auditors are just doing their jobs, we live and breathe this stuff daily. With our expertise in your corner, you can rest assured that no stone will be left unturned in building the strongest possible defense for your ERC claim. We’ll make sure you have all your ducks in a row, documentation-wise, and we’ll coach you on how to address any concerns the IRS might raise.
We’ll Handle Every Aspect of Your Audit
But our role goes far beyond just prepping you for the audit itself. From that very first document request, we’ll take the reins and drive the entire process forward.Need to respond to an IRS letter or summons? We’ll handle it with the utmost professionalism and expertise. Have to gather evidence or documentation? We’ll make sure you get everything the IRS wants, not a single piece of paper missing. The IRS wants to bring you in for an interview? No worries, we’ll be right there by your side, making sure you don’t accidentally say anything that could jeopardize your case. Simply put, when you hire Spodek Law Group for your ERC audit, you’re getting a dedicated team of legal experts whose only priority is protecting your rights and your interests. We become your voice, your shield, and your greatest advocates throughout every single stage of the process.
What to Expect During an ERC Audit
The Opening Salvo
So, you’ve decided to bring in the big guns and hire Spodek Law Group for your ERC audit representation. Here’s what happens next:
First, we’ll want to go through your initial ERC claim with a fine-toothed comb. We need to understand every minute detail, every number, every piece of documentation you originally submitted. From there, we’ll start mapping out a comprehensive strategy for addressing any potential weaknesses or issues the IRS might try to poke holes into.
We’ll look at things like:
- Whether you clearly met the “significant decline in gross receipts” threshold
- If your business operations were truly “partially suspended” by a government order
- How you calculated those “qualified wages” that determined your credit amount
- Any other eligibility criteria you had to meet
Basically, we’ll make sure we can counter any arguments the IRS might try to make before they even make them. We’ll shore up your defenses and get you fully prepared for whatever comes next.
The Document Deluge
Once that initial IRS letter comes requesting documentation, that’s when things really kick into high gear. You can expect a literal blizzard of paperwork and requests from the IRS, all with a relatively tight turnaround time.Don’t worry, though – you won’t be the one scrambling to pull it all together. That’s what you hired us for. Our team will work tirelessly, gathering every shred of evidence and documentation the IRS wants to see:
- Payroll records and tax filings? Got it.
- Receipts and accounting books? No problem.
- Employee work logs and timesheets? You betcha.
- Actual copies of those COVID-19 government orders that impacted your business? We’ll get ’em.
Auditor Interviews and On-Site Visits
Of course, no ERC audit would be complete without the IRS wanting to actually talk to you and your team. And when that time comes, you’d better believe we’ll have prepared you for every potential question or scenario.From informal phone interviews with auditors to in-person grillings, we’ll be right there by your side, making sure you give the auditors exactly what they need to hear – and nothing more.The key thing to remember? With Spodek Law Group handling your audit representation, you’re never going it alone. We’ll be there through every step, every interview, every meeting, making sure you never get flustered or say the wrong thing.
The Potential Outcomes
Alright, let’s talk about what could actually happen once this ERC audit finally reaches its conclusion. In an ideal world, the auditors will go through all your documentation, hear your arguments, and determine that yep – you calculated and claimed that Employee Retention Credit properly. In that case, you get a tidy little “no-change” letter from the IRS, and you can put this whole stressful episode behind you. But, what if the auditors don’t see things your way? What if they try to hit you with penalties, interest, or even attempt to claw back the entire ERC payment? Well, that’s when you’re really going to be glad you hired the tax litigation experts at Spodek Law Group. See, we’re not just audit experts – we’re full-blown tax controversy mavens. We know the IRS appeals process inside and out, and we won’t hesitate to fight tooth and nail to get you the best possible resolution. From drafting airtight legal briefs to making arguments in front of IRS appeals courts, we’ll go full Erin Brockovich to make sure you don’t pay a penny more than you rightfully should. And if we somehow still don’t get the outcome we want after exhausting all appeals? Well, then we make things official and take the whole case to US Tax Court to get a final, impartial ruling. Simply put, when you hire Spodek Law Group, you’re not just getting audit expertise – you’re getting a team of legal professionals who will never, ever, ever give up on getting you a fair shake.
Every single client deserves honesty and white glove service. And when it comes to ERC audits, you deserve a team of legal experts who will fight tooth and nail to protect your rights and your interests.That’s just how we roll at Spodek Law Group. So, what are you waiting for? Let’s get started. Call us today at 212-210-1851 or schedule a free consultation online.