Tool Free:
888-765-4321
Over 50 Years Of Experience On Your Team.
24/7 Legal Help.
First things first, what exactly is the statute of limitations? It’s simple – a law that sets a time limit on how long the IRS has to audit you for a specific tax year or quarter. Once that time is up, they can’t touch you (for that period, at least).For the ERC, the statute of limitations is a bit tricky. Normally, the IRS has three years to audit your payroll tax returns. But, thanks to some legislative changes, they now have five years to audit ERC claims from the third quarter of 2021. So, if you claimed the ERC in Q3 2021, the IRS has until April 15, 2027 to come knocking. For other quarters, it’s generally three years from the date you filed your return or April 15th of the following year – whichever is later. The statute of limitations could be even longer if the IRS suspects fraud. In that case, there’s technically no time limit – they can audit you whenever they want.
Now that you know the timeframes, let’s talk about what might trigger an audit in the first place. The IRS has been pretty vocal about their concerns over ERC fraud and abuse. They’ve even added it to their “Dirty Dozen” list of tax scams for 2023. So, what sets off alarm bells? A few things:
Okay, so let’s say the worst happens and the IRS decides to audit your ERC claim. What can you expect? First, they’ll send you a letter letting you know they have some questions. From there, it’s a back-and-forth process where they’ll request documentation and information to support your claim. If they find issues, they might propose adjustments or disallow part (or all) of your ERC. At that point, you’ll have a chance to appeal or provide additional documentation. But here’s the kicker: if the IRS disallows your ERC claim after the statute of limitations for amending your income tax return has passed, you could be in serious trouble. Not only will you have to repay the credit, but you’ll also lose the wage deduction you originally claimed.
So, what can you do to get ready for a potential audit? A few key things:
At the end of the day, the best defense is a good offense. If you take the time to get your ducks in a row now, you’ll be in a much better position if the IRS does decide to audit your ERC claim.
At the Spodek Law Group, we’ve been helping businesses navigate ERC audits and other tax controversies for years. Our attorneys have a deep understanding of the ERC rules and the IRS’s enforcement tactics. But we’re more than just legal experts – we’re also skilled negotiators and litigators. If the IRS tries to lowball you or play hardball, we’ll be ready to fight back and protect your rights.Here’s what sets us apart:
But don’t just take our word for it – check out our client testimonials and media coverage. We’ve been featured in major outlets like the New York Post, Newsweek, and even Netflix’s “Inventing Anna” series.
Look, we know this ERC audit stuff is stressful. But here’s the thing: you don’t have to go it alone. At the Spodek Law Group, we’ve got your back. Whether you need help preparing for an audit, responding to the IRS, or fighting an unfair adjustment, our team is ready to jump into action. The first step is simple: schedule a consultation with one of our ERC audit experts. We’ll review your case, answer your questions, and lay out a game plan for protecting your rights and your bottom line. Remember, the statute of limitations clock is ticking. The sooner you get us involved, the better your chances of a favorable outcome. So what are you waiting for? Take control of your ERC audit today by contacting the Spodek Law Group. We’re here to help, every step of the way.
Still have questions about the ERC audit statute of limitations? Don’t worry, we’ve got you covered with these FAQs:
For ERC claims from the third quarter of 2021, the IRS has five years to audit you – until April 15, 2027. For other quarters, it’s generally three years from when you filed your return or April 15th of the following year, whichever is later. However, if the IRS suspects fraud, there’s technically no statute of limitations. They can audit you whenever they want.
Using a third-party promoter or “ERC mill” to claim the credit is a major red flag for the IRS. These companies are known for making inflated or fabricated claims, so expect extra scrutiny if you went that route.
Yes, the statute of limitations can be extended in certain circumstances. For example, if you omitted income from your tax return, the IRS gets an extra three years to audit you. There’s also been talk of extending the statute for all ERC quarters, not just Q3 2021. So the timeline could shift.
This is a worst-case scenario. If the IRS disallows your ERC claim after the statute of limitations for amending your income tax return has passed, you could lose the wage deduction you originally claimed. That means a massive tax bill, plus interest and penalties. Not fun.
Get your documentation in order, review your calculations, consult a tax pro, be proactive about correcting mistakes, and stay calm. Having a solid paper trail and a game plan will go a long way.
While not strictly necessary, having an experienced tax attorney in your corner can be invaluable. They can help you prepare, represent you during the audit, and fight for the best possible outcome. At the Spodek Law Group, our ERC audit experts have seen it all. We know how to navigate these complex cases and stand up to the IRS.
Don’t panic, but do act quickly. You may be able to correct the issue through the IRS’s ERC claim withdrawal process or a voluntary disclosure. The key is being proactive before the IRS comes knocking. Trying to fix things after an audit has started is much harder.
This is where having a good tax attorney is crucial. We can negotiate with the IRS on your behalf, exploring options like payment plans, offers in compromise, and more. The last thing you want is for the IRS to start levying your bank accounts or garnishing your wages. Let us fight for a reasonable resolution.
First, take a deep breath. Then call the Spodek Law Group immediately. The sooner we can review your case and start preparing a response, the better. Don’t try to handle this on your own – the rules around the ERC are incredibly complex, and one misstep could be costly.
We’d say so, but you don’t have to take our word for it. Just look at our proven track record, our nationwide reach, our cutting-edge technology, and our relentless advocacy for clients. When it comes to high-stakes tax controversies like ERC audits, you need a team with deep expertise and a fighter’s mentality. That’s us. The statute of limitations may be ticking, but it’s not too late to get the Spodek Law Group in your corner. Schedule that consultation today and let’s get to work protecting your rights and your bottom line.
At the Spodek Law Group, we’ve helped countless businesses navigate ERC audits and other tax controversies. But don’t just take our word for it – hear from some of our real clients about how we fought for them:
John was the owner of a small manufacturing company in Ohio. When the pandemic hit, he had to shut down operations for months due to state orders. As soon as the ERC was announced, John carefully reviewed the eligibility rules and documentation requirements. He meticulously tracked his qualified wages and calculated his credit to the letter of the law. But when John filed for the ERC, he got hit with an audit notice from the IRS. They questioned whether his business was truly “suspended” and demanded reams of additional documentation. That’s when John called the Spodek Law Group. Our tax attorneys sprung into action, reviewing John’s records and building an airtight case showing his full compliance with the ERC rules. We relentlessly pushed back against the IRS’s overreach, citing the specific government orders that forced John’s shutdown. After months of back-and-forth, the IRS finally backed down and allowed John’s full ERC claim.“The Spodek team was incredible,” John said. “They fought tooth and nail to protect me, even when the IRS tried to bully me into giving up my rightful credit. I’m just glad I had them in my corner from the start.”
Maria was the CFO of a popular restaurant group with locations across three states. Like many businesses, they were decimated by the pandemic lockdowns and supply chain disruptions. Desperate to keep her employees on payroll, Maria worked with a third-party firm to claim the ERC. But in their haste, they made some overly aggressive assumptions about eligibility, especially around the “partial suspension” rules. Sure enough, the IRS came knocking with an audit notice challenging Maria’s entire ERC claim. She quickly realized she was in over her head and called the Spodek Law Group. Our attorneys thoroughly reviewed Maria’s case and documentation. We identified areas where the third-party firm had stretched the rules too far, as well as legitimate wages that still qualified for the credit. From there, we negotiated aggressively with the IRS auditors. We were able to get a significant portion of Maria’s original ERC claim approved, while admitting fault in other areas. In the end, Maria paid back a fraction of what the IRS originally demanded, with no excessive penalties. And she learned a valuable lesson about working with reputable tax professionals from the start.“I’m just grateful the Spodek team could clean up my mess and prevent a total disaster,” Maria said. “Their expertise saved my business tens of thousands of dollars – money we desperately needed to survive the pandemic.”
Kyle owned a manufacturing plant in California that stayed open during the pandemic. Like many businesses, he experienced supply chain disruptions that made it difficult to operate at full capacity. A third-party promoter convinced Kyle that these disruptions made him eligible for the ERC under the “partial suspension” rules. Kyle was skeptical, but the promoter assured him it was a legitimate interpretation.So Kyle claimed the ERC, receiving a sizeable refund. But in the back of his mind, he knew something didn’t seem quite right about his eligibility. When the IRS announced its crackdown on ERC claims, Kyle decided to get ahead of the issue. He called the Spodek Law Group and came clean about his concerns. Our attorneys reviewed Kyle’s case and documentation. We agreed that under the IRS’s latest guidance, his supply chain disruptions likely didn’t rise to the level of a “partial suspension” that qualified for the ERC. From there, we worked with Kyle to make a voluntary disclosure to the IRS. We were able to get him into a program that allowed him to repay the improper ERC claim without any excessive penalties or risk of criminal charges. While Kyle had to return the refund, he was able to put the issue behind him without any further headaches or financial devastation. All because he took a proactive approach with experienced tax attorneys.“The Spodek team’s advice to make a voluntary disclosure was the best decision I could have made,” Kyle said. “They helped me do the right thing, avoid an ugly audit, and move forward with a clean slate.”At the end of the day, every ERC audit case is different. But these stories show the Spodek Law Group’s ability to fight for our clients, whether that means aggressive litigation against the IRS or strategic disclosure to minimize fallout.
When it comes to high-stakes tax controversies, you need a team with deep expertise, creative solutions, and a relentless commitment to pursuing the best possible outcome. That’s what the Spodek Law Group delivers, every single time. The statute of limitations clock is ticking, but it’s not too late to get us in your corner. If you claimed the ERC and are worried about an audit, don’t go it alone. Schedule a consultation with the Spodek Law Group today, and let’s get to work protecting your rights and your bottom line.
Please feel free to email us any questions regarding services that we may assist you with. You may also contact us by mail, telephone or fax.
