How Can Businesses Prep for IRS Review of an ERTC Claim?

October 5, 2023
Dayes Law Firm

As a business owner, you may have heard that the IRS has ordered an immediate stop to new Employee Retention Tax Credit (ERTC/ERC) processing due to concerns about potentially fraudulent claims. If you are considering claiming the ERTC but are concerned about a possible IRS review of your claim, there are some ways you can prepare for increased scrutiny even if you intend to go about the process legitimately and lawfully. 

How Businesses Can Prepare for a Potential IRS ERTC Review

In the past, the IRS has warned that “improperly claiming the ERC could result in taxpayers being required to repay the credit along with penalties and interest.” Obviously, no business owner wants to contend with an IRS audit or other potential negative actions from the agency. 

Fortunately, there are some steps you can take to prepare for a potential IRS review of your business’s ERTC claim. If you went through every step of the Employee Retention Credit process correctly – especially if you had the assistance of an ERTC tax professional – you should have little reason to be concerned. 

If you make sure to submit the correct statements, documentation, and all required information when you file your Form 941-X for the ERTC, that should help you avoid an IRS audit when you submit your claim. Including all necessary documentation like any important payroll records and employment tax returns is important to proving an eligible claim. The more evidence you have that your claim is legitimate and that you are, in fact, allowed to claim the ERTC for your business, the better. 

But despite your best efforts, if the IRS has any suspicion of errors or misrepresentation in your ERTC claim, you could be audited anyway. Having a tax professional on your side can help you with both the claims process and a possible ERTC audit situation if they end up being needed for that potential outcome. 

How Tax Professionals Can Help with an IRS ERTC Review

A reputable tax professional can assist you with your Employee Retention Tax Credit claim in the first place to hopefully avoid a potential IRS review of your ERTC claim. They can double-check every piece of information you send the agency and have the experience to know exactly what the IRS will be looking for and what might raise a red flag in your application. 

The tax professionals at Dayes Law Firm, for instance, have assisted businesses with filing for over $250 million in ERTC tax credit claims so far. Our team knows what to include in the strongest possible ERTC claim for your business and how to help your business get the maximum achievable tax claim refund from the agency.

However, if you do end up being audited, the Dayes team can assist with that too. Our tax attorneys will defend our work and support any businesses we assist with the Employee Retention Tax Credit with a potential ERTC audit. While we of course hope to have you avoid a potential IRS audit review of your ERTC claim, if the situation arises, we’ll be ready. 

Please contact us for a no-obligation consultation with one of our staff members to see how we can help you and your business with your ERTC application. We would be happy to answer any questions or concerns you may have about the tax claim process. Call (800) 503-2000 to learn more today – we look forward to speaking with you!