The IRS has announced substantial audit enforcement for Employee Retention Credit (ERC) claims. While details of who will be selected have not been disclosed, all taxpayers should actively prepare to defend their ERC claim - particularly if a third-party promotor was involved instead of an existing, trusted tax professional.
Third-party promoters typically charge a percentage of the resulting refund, heavily market with ads, calls, emails, and texts, and urge submissions because there is nothing to lose. In reality, those improperly receiving the credit could have to repay the credit – along with substantial interest and penalties. They may ultimately take little or no responsibility for a business’s eligibility and may not even sign the amended returns for a refund. Another way to spot a promoter is the widespread use of the supply chain disruption rules for the ERC (which are actually a very narrow exception). The IRS has recently identified supply chain disruption as one of the primary ways third-party promoters will deceive taxpayers into thinking they qualify for ERC when they really do not.
Fortunately, at Trout CPA, our highly qualified experts in ERC are here to help. We can perform preventative audits of your ERC to see if you really did qualify for the ERC or if you should consider repaying the IRS the amount you received from your ERC either by taking advantage of the IRS’s withdrawal program or settlement program.
We also have highly qualified taxpayer representatives who can defend you if the IRS audits you for your ERC.
If you want a preventative audit performed, or you have been selected for audit by the IRS, or have other questions related to your ERC, please contact Trout CPA at 717-569-2900 and ask for Dan Chodan, Michael Carr, or Michael Losito.