May 2, 2024

Best Utah ERC Audit Lawyers?

If you’ve been selected for an ERC audit, don’t panic – it doesn’t necessarily mean you did anything wrong.

The IRS is simply verifying that your claim meets all the requirements. According to the IRS Employee Retention Credit page, the IRS is concerned about a large number of improper ERC claims and is closely reviewing tax returns that claim the credit.

But, you’ll want to have a solid defense strategy in place, because the stakes are high.

What to Expect During an IRS ERC Audit

Here’s a quick rundown of what you can expect:

The Notification: You’ll receive a letter from the IRS informing you that your ERC claim has been selected for an audit. This letter will outline the specific information and documentation they need from you.

The Information Document Request (IDR): This is where things get serious. According to tax advisory experts, the IRS will send you a Form 4564, Information Document Request, requesting a mountain of records and evidence to support your ERC claim. This could include:

• Financial statements
• Payroll records
• Proof of government orders impacting your business
• Workpapers used to prepare Form 941-X

The Response: You’ll have a strict deadline to respond to the IDR with all the requested information. Missing this deadline, or providing incomplete documentation, could seriously jeopardize your case.

The Examination: An IRS auditor will thoroughly review all the information you’ve provided, and may follow up with additional requests or interviews.

The Determination: Finally, the auditor will make a determination on whether your ERC claim was valid or not. If they find issues, you could face having to repay the credit, plus potential penalties and interest.

The Complexity of ERC Audits

Now, this process can be incredibly complex and stressful, especially if you’re dealing with a large ERC claim.

The IRS announced that between 60% and 70% of claims show an unacceptable level of risk, highlighting the need for careful preparation.

That’s why having an experienced ERC audit defense lawyer in your corner is absolutely crucial.

Why You Need a Top Utah ERC Audit Lawyer

What might seem like a clear-cut case to you, could be seen very differently by the IRS auditor.

An experienced ERC audit lawyer knows exactly how to build an airtight defense for your claim. They’ll ensure you have all the necessary documentation, properly formatted and presented in a way that leaves no room for doubt.

They’ll also know how to effectively communicate with the IRS, and push back against any unfair determinations or penalties.

Peace of Mind During the Audit Process

But it’s not just about the technical aspects of the audit – a top ERC lawyer will also provide invaluable peace of mind during this stressful process.

They’ll be your advocate, your guide, and your support system, ensuring you understand every step and feel confident in your defense.

At Spodek Law Group, our team of ERC audit defense attorneys have decades of combined experience in handling complex tax matters. We’ve successfully defended countless businesses against IRS audits, and we know exactly what it takes to protect your interests.

Building a Solid ERC Audit Defense

So, what goes into building a rock-solid defense for your ERC claim?

Here are some key elements our lawyers will focus on:

1. Documenting Eligibility

The first step is to thoroughly review and document your eligibility for the ERC.

According to federal audit guidance, the IRS generally focuses its ERC audits on ensuring:

• The business meets one of the qualifying tests
• The business had a sufficient revenue decline
• The business was partially or fully suspended due to a government order
• PPP was properly offset in the ERC calculation

This could involve proving a significant decline in gross receipts during the qualifying periods, or demonstrating how government orders directly impacted your business operations.

Our lawyers will work closely with you to gather and organize all the necessary financial records, legal documents, and other evidence to support your claim. We’ll leave no stones unturned, ensuring every detail is accounted for and presented in a clear, compelling manner.

2. Addressing Red Flags

The IRS has identified certain “red flags” that can trigger an ERC audit, such as claims filed by known “mills” or claims that seem disproportionately large compared to your business size.

The IRS moves forward announcement notes that some promoter groups called the credit by another name, such as a grant or business stimulus payment.

Our attorneys will proactively address any potential red flags in your case, providing detailed explanations and evidence to counter any doubts or suspicions.

3. Navigating Complex Rules

The ERC rules and regulations are a labyrinth of legalese and nuanced interpretations.

According to Paychex compliance guidance, ERC eligibility can vary from one tax period to another if government orders were no longer in place or a business’s gross receipts increased.

Our lawyers are well-versed in all the latest guidance, court rulings, and IRS positions on ERC eligibility. We’ll ensure your claim is fully compliant, and we’ll be ready to counter any challenges or differing interpretations from the IRS.

4. Protecting Your Rights

Throughout the audit process, our attorneys will be vigilant in protecting your rights as a taxpayer.

We’ll ensure the IRS follows proper procedures, and we won’t hesitate to push back against any overreach or unfair treatment.

Your interests will always be our top priority.

5. Exploring Resolution Options

In some cases, the IRS may determine that a portion or all of your ERC claim was improper.

The IRS Voluntary Disclosure Program allows businesses to repay only 85% of the ERC received and avoid future audits, penalties, and interest.

Our lawyers will explore all available resolution options, from negotiating a settlement to appealing the decision through the appropriate channels. We’ll fight tirelessly to minimize any penalties or repayments, and to protect your business’s financial interests.

The Importance of Timing

Time is of the essence when it comes to ERC audits. The IRS has strict deadlines for responding to information requests and appeals, and missing these deadlines can severely undermine your case.

The IRS withdrawal process notes that claims that are withdrawn will be treated as if they were never filed, but this option is only available before payment.

That’s why it’s crucial to engage an ERC audit lawyer as soon as you receive that initial audit notification letter. The sooner we can start building your defense, the better your chances of a favorable outcome.

At Spodek Law Group, we understand the urgency of these situations. Our team is available 24/7 to start working on your case, ensuring no critical deadlines are missed and your rights are fully protected from day one.

Choosing the Right ERC Audit Lawyer

Not all ERC audit lawyers are created equal. When your business is on the line, you need a firm with a proven track record of success, deep expertise in tax law, and a commitment to personalized, attentive service.

Key Factors in Selecting Legal Representation

Here are some key factors to consider when choosing an ERC audit lawyer in Utah:

1. Experience and Expertise

Look for a firm with extensive experience in handling ERC audits and other complex tax matters. The lawyers should have a deep understanding of the ERC rules, as well as the latest IRS guidance and court rulings related to the credit.

2. Reputation and Results

Research the firm’s reputation and track record of success in ERC audit cases. Look for client testimonials, industry recognition, and a history of favorable outcomes in high-stakes tax disputes.

3. Personalized Service

Your ERC audit case is unique, and you deserve a legal team that will treat it as such. Look for a firm that takes a personalized approach, working closely with you to understand the nuances of your situation and tailoring their strategy accordingly.

4. Communication and Accessibility

Throughout the audit process, clear and frequent communication with your legal team is essential. Look for a firm that prioritizes accessibility and responsiveness, keeping you informed and involved every step of the way.

5. Comprehensive Support

An ERC audit can be a complex and multi-faceted process, involving various legal and financial aspects. Look for a firm that can provide comprehensive support, from gathering and organizing documentation to exploring resolution options and handling appeals if necessary.

Best Utah ERC Audit Lawyers?