24/7 call for a free consultation 212-300-5196




When you’re facing a federal issue, you need an attorney whose going to be available 24/7 to help you get the results and outcome you need. The value of working with the Spodek Law Group is that we treat each and every client like a member of our family.

Best Massachusetts ERC Audit Lawyers?

Facing an ERC Audit in Massachusetts? Here’s What You Need to Know

Understanding ERC Audits: Why the IRS Targeted This Credit

Before we dive into audit specifics, let’s quickly recap what the ERC is and why it’s under such intense scrutiny. The Employee Retention Credit was a refundable tax credit designed to incentivize businesses to keep workers on payroll during COVID-19. Eligible employers could claim a credit on qualified wages paid between March 2020 and September 2021. On paper, it was a great program to support struggling businesses and their employees. In reality, it opened the floodgates for rampant fraud and abuse. According to the IRS, they’ve already identified over $2.8 billion in potentially fraudulent ERC claims as of July 2023. And that’s just the tip of the iceberg – they suspect billions more were improperly claimed. A big part of the problem? Third-party “ERC mills” that aggressively marketed the credit using deceptive tactics. Many businesses were misled into thinking they qualified when they didn’t. Others simply made mistakes in calculating the complex credit. Whatever the reason, the IRS isn’t playing games. They’ve labeled ERC fraud as a top priority and are deploying significant resources to crack down through audits and criminal investigations. If your business claimed the ERC, even inadvertently, you could be a target. That’s why having the right Massachusetts lawyer is crucial from the very start.

Common ERC Audit Triggers: Red Flags That Increase Your Risk

Not every business that claimed the ERC will be audited. The IRS has to prioritize their limited resources. So what raises red flags and makes you a likely target? Based on IRS guidance and our experience, these are some of the biggest audit triggers to watch out for:

Discrepancies in Claimed Amounts
If the ERC amount you claimed seems unusually high compared to similar businesses, that’s an immediate red flag. The IRS will want to verify your calculations and documentation.

Errors or Inconsistencies in Documentation
Mistakes, missing info, or contradictions in the records you provided can prompt further investigation. Maintaining flawless documentation is critical.

Using an ERC Mill or Aggressive Promoter
The IRS has explicitly warned about firms pushing deceptive ERC strategies. If you used one of these mills, expect heightened scrutiny.

Excessive or Unsupported Claims
If your claimed credit doesn’t align with your stated eligibility, number of employees, or financial data, the IRS will dig deeper.

Prior Non-Compliance or Audits
A history of tax issues or previous audits makes you a riskier candidate in the IRS’s eyes. Your past can come back to haunt you.

Christine Twomey
Christine Twomey
Just had my Divorce case settled 2 months ago after having a horrible experience with another firm. I couldn’t be happier with Claire Banks and Elizabeth Garvey with their outstanding professionalism in doing so with Spodek Law Group. Any time I needed questions answered they were always prompt in doing so with all my uncertainties after 30 yrs of marriage.I feel from the bottom of my heart you will NOT be disappointed with either one. Thanks a million.
Brendan huisman
Brendan huisman
Alex Zhik contacted me almost immediately when I reached out to Spodek for a consultation and was able to effectively communicate the path forward/consequences of my legal issue. I immediately agreed to hire Alex for his services and did not regret my choice. He was able to cover my case in court (with 1 day notice) and not only was he able to push my case down, he carefully negotiated a dismissal of the charge altogether. I highly recommend Spodek, and more specifically, Alex Zhik for all of your legal issues. Thanks guys!
Guerline Menard
Guerline Menard
Thanks again Spodek law firm, particularly Esq Claire Banks who stood right there with us up to the finish line. Attached photos taken right outside of the court building and the smile on our faces represented victory, a breath of fresh air and satisfaction. We are very happy that this is over and we can move on with our lives. Thanks Spodek law 🙏🏼🙏🏼🙏🏼🙏🏼🙌🏼❤️
Keisha Parris
Keisha Parris
Believe every single review here about Alex Z!! From our initial consultation, it was evident that Alex possessed a profound understanding of criminal law and a fierce dedication to his clients rights. Throughout the entirety of my case, Alex exhibited unparalleled professionalism and unwavering commitment. What sets Alex apart is not only his legal expertise but also his genuine compassion for his clients. He took the time to thoroughly explain my case, alleviating any concerns I had along the way. His exact words were “I’m not worried about it”. His unwavering support and guidance were invaluable throughout the entire process. I am immensely grateful for Alex's exceptional legal representation and wholeheartedly recommend his services to anyone in need of a skilled criminal defense attorney. Alex Z is not just a lawyer; he is a beacon of hope for those navigating the complexities of the legal system. If you find yourself in need of a dedicated and competent legal advocate, look no further than Alex Z.
Taïko Beauty
Taïko Beauty
I don’t know where to start, I can write a novel about this firm, but one thing I will say is that having my best interest was their main priority since the beginning of my case which was back in Winter 2019. Miss Claire Banks, one of the best Attorneys in the firm represented me very well and was very professional, respectful, and truthful. Not once did she leave me in the dark, in fact she presented all options and routes that could possibly be considered for my case and she reinsured me that no matter what I decided to do, her and the team will have my back and that’s exactly what happened. Not only will I be liberated from this case, also, I will enjoy my freedom and continue to be a mother to my first born son and will have no restrictions with accomplishing my goals in life. Now that’s what I call victory!! I thank the Lord, My mother, Claire, and the Spodek team for standing by me and fighting with me. Words can’t describe how grateful I am to have the opportunity to work with this team. I’m very satisfied, very pleased with their performance, their hard work, and their diligence. Thank you team!
Anthony Williams
Anthony Williams
Hey, how you guys doing? Good afternoon my name is Anthony Williams I just want to give a great shout out to the team of. Spodek law group. It is such a honor to use them and to use their assistance through this whole case from start to finish. They did everything that they said they was gonna do and if it ever comes down to it, if I ever have to use them again, hands-down they will be the first law office at the top of my list, thank you guys so much. It was a pleasure having you guys by my side so if you guys ever need them, do not hesitate to pick up the phone and give them a call.
Loveth Okpedo
Loveth Okpedo
Very professional, very transparent, over all a great experience
Bee L
Bee L
Amazing experience with Spodek! Very professional lawyers who take your case seriously. They treated me with respect, were always available, and answered any and all questions. They were able to help me very successfully and removed a huge stress. Highly recommend.
divesh patel
divesh patel
I can't recommend Alex Zhik and Spodek Law Firm highly enough for their exceptional legal representation and personal mentorship. From the moment I engaged their services in October 2022, Alex took the time to understand my case thoroughly and provided guidance every step of the way. Alex's dedication to my case went above and beyond my expectations. His expertise, attention to detail, and commitment to achieving the best possible outcome were evident throughout the entire process. He took the time to mentor me, ensuring I understood the legal complexities involved to make informed decisions. Alex is the kind of guy you would want to have a beer with and has made a meaningful impact on me. I also want to acknowledge Todd Spodek, the leader of the firm, who played a crucial role in my case. His leadership and support bolstered the efforts of Alex, and his involvement highlighted the firm's commitment to excellence. Thanks to Alex Zhik and Todd Spodek, I achieved the outcome I desired, and I am incredibly grateful for their professionalism, expertise, and genuine care. If you're in need of legal representation, look no further than this outstanding team.

Filing Amended Returns Related to the ERC
This resets the statute of limitations, giving the IRS more time to review your claims. It’s an audit trigger in itself.The key takeaway? Any discrepancy that makes your ERC claim look questionable will likely land you on the IRS’s radar. And once they start digging, you’ll want a Massachusetts lawyer who knows how to handle ERC audits.

The ERC Audit Process: What to Expect When the IRS Comes Calling

So what actually happens if you’re selected for an ERC audit in Massachusetts? The process can vary, but generally follows this framework:

1) The IRS Issues an Initial Contact Letter
You’ll receive an audit notification letter, known as an Information Document Request (IDR). This letter outlines the issues the IRS intends to examine related to your ERC claim.

2) You’re Asked to Provide Supporting Documentation
The IDR will request specific documents and information to substantiate your eligibility for the credit. We’ll cover some of the key documents in the next section.

3) The Auditor Examines Your Documentation
An IRS auditor (likely trained specifically on ERC issues) will comb through everything you provide. They’ll be looking for any potential errors, discrepancies, or lack of support for your claim.

4) You May Be Asked for Additional Information
If the auditor has further questions or needs clarification on certain items, you’ll receive another IDR requesting more documentation. This back-and-forth can continue for some time.

5) The Auditor Issues a Final Determination
Once the auditor is satisfied, they’ll issue a final report. If your documentation successfully substantiates your ERC claim, you’ll receive a “no change” report. If not, the IRS will adjust or disallow your claim, potentially assessing additional taxes, interest, and penalties.

6) You Have Appeal Rights if You Disagree
If the IRS’s determination goes against you, you can appeal and protest the findings through the administrative process. This is where having an experienced Massachusetts ERC audit lawyer is invaluable. The entire process, from initial contact to final determination, can take months or even years in some cases. The IRS moves at its own pace, so patience is crucial.Throughout the audit, the burden of proof is on you to establish eligibility and substantiate your ERC calculations. Proper documentation is paramount – which brings us to the next key point.

Key Documents the IRS Wants to See for ERC Audits

What kind of documentation will the IRS require during an ERC audit? Their IDR will spell out exactly what they need, but expect to provide:

  • Payroll Records and Reports – This includes quarterly payroll tax returns, W-2s, 1099s, and any other wage reports covering the ERC period.
  • Financial Statements and Books – Profit & loss statements, general ledgers, bank statements, and accounting records are all fair game.
  • Tax Returns – The IRS will want to see your business income tax returns for any years you claimed the ERC.
  • Employee Listings and Details – You’ll need records showing employee headcounts, hire/term dates, duties, hours worked, and compensation during the covered periods.
  • Operational and Revenue Data – Documents proving any full or partial business suspensions, supply chain disruptions, and significant revenue declines that made you eligible.
  • Worksheets and Calculations – The IRS will scrutinize any worksheets or calculations you used to determine your ERC amount. Every number must be substantiated.
  • Third-Party Agreements – If you used a professional service to claim the credit, you’ll need to provide those engagement details.

The list goes on, but you get the idea. Essentially, the IRS wants to see a clear, documented trail supporting every aspect of your ERC claim – no stone will be left unturned.Keeping immaculate records is crucial. But even then, the IRS’s labyrinthine rules around ERC eligibility create plenty of room for innocent mistakes or differing interpretations. That’s where a skilled Massachusetts lawyer can make all the difference.

Potential Penalties for ERC Non-Compliance in Massachusetts

If the IRS ultimately disallows or reduces your ERC claim, you could be on the hook for more than just back taxes. Depending on the specific circumstances, you may face:

Accuracy-Related Penalties
If your underpayment exceeds certain thresholds due to negligence or disregard of rules and regulations, the IRS can tack on a 20% penalty on the understatement.

Civil Fraud Penalties
In cases where the IRS deems your actions as fraudulent, you could face a civil penalty of 75% of the underpayment amount. This is on top of having to repay the disallowed credit.

Criminal Fraud Prosecution
While very rare, the IRS can potentially pursue criminal charges for ERC fraud in egregious cases. If convicted, you could face fines and even jail time. The penalties get progressively steeper the more the IRS perceives wrongdoing on your part. That’s why it’s so important to demonstrate you acted reasonably and in good faith when claiming the ERC. Even if you simply made careless mistakes, the IRS may still assert penalties for negligence. Having proper documentation and a Massachusetts lawyer to argue your case can mean the difference between a slap on the wrist or a knockout blow.

Finding the Best Massachusetts ERC Audit Lawyer: Key Qualities to Seek

With so much at stake, you can’t afford to go into an ERC audit without the right legal representation. But what separates a good Massachusetts ERC audit lawyer from a great one? Here are some key qualities to look for:

In-Depth Knowledge of the ERC and Its Complexities
The rules and calculations around the Employee Retention Credit are dizzyingly complex. You need a lawyer who has studied them inside and out and stays current as guidance evolves.

Prior Experience Handling ERC Audits and Appeals
This is still a relatively new area. Look for a firm with demonstrable experience successfully guiding clients through real ERC audits and appeals in Massachusetts.

Meticulous Documentation and Attention to Detail
With ERC audits, the devil is in the details. Your lawyer needs to be a documentation stickler who won’t let anything slip through the cracks.

Ability to Clearly Communicate Complex Tax Concepts
Even the best documentation is useless if your lawyer can’t clearly articulate your position to IRS auditors. You need a true counselor who can advocate persuasively.

Accessibility and Hands-On Client Service
ERC audits are grueling marathons, not sprints. You want a lawyer who will be there for you every step of the way with hands-on guidance.

Reasonable, Upfront Pricing with No Surprises
Some firms will nickel-and-dime you throughout an audit. Seek a lawyer who lays out a clear, fair pricing structure from day one. At Spodek Law Group, we pride ourselves on checking all of these boxes and more. Our team of Massachusetts tax attorneys has extensive experience guiding businesses through all types of audits and tax controversies – including the complex world of ERC audits. We’re not just legal experts, but true counselors dedicated to clearly explaining your situation and fighting tenaciously for the best possible outcome. No matter how complex your case, we have the knowledge and documentation skills to substantiate your claims. And with our risk-free consultations, you can get to know us before making any commitments. We’re here to listen, understand your unique situation, and build a battle plan together.

Hire the Best Massachusetts ERC Audit Lawyers: Spodek Law Group

Look, getting audited is never fun. But with the right legal strategy and Massachusetts lawyers in your corner, you can survive an ERC audit relatively unscathed. At Spodek Law Group, our sole mission is protecting you and your business. We understand the nuances of the Employee Retention Credit and the IRS’s aggressive enforcement tactics. More importantly, we know how to craft a comprehensive defense that withstands the toughest scrutiny. Every client relationship starts with a free, completely confidential consultation. This gives us a chance to listen to your story and understand the details of your situation. From there, we can formulate a customized strategy and clearly lay out your options.Whether your goal is avoiding penalties, negotiating a settlement, or fighting the IRS determination through appeals, we have the expertise to get it done.

Our team features:

  • Tax Attorneys with over 50 years of combined IRS controversy experience
  • Lawyers featured in Newsweek, NY Post, WSJ, and other major media
  • A second-generation tax law firm with a passion for client service
  • Professionals who can break down complex tax issues into simple terms

The IRS’s ERC audit machine is only ramping up. If you’ve been contacted or have concerns about your credit claim, now is the time to get a player-coach who can go toe-to-toe with the IRS. Don’t try to navigate this alone. Don’t risk your business’s future on an inexperienced tax lawyer.

Hire the Spodek Law Group team – the ERC audit specialists who put clients first.Take that first step today by scheduling your free, confidential consultation. Simply call 212-300-5196 or visit us online. It’s that simple – because every client deserves honesty and white glove service from day one.

Schedule Your Consultation Now