If you’ve been accused of Employee Retention Tax Credit (ERTC/ERC) fraud by the IRS, don’t panic. There are steps you can take to deal with the situation, and a number of potential defenses a tax attorney may be able to help you with when dealing with an ERTC fraud claim or audit investigation. 

What to Do If the IRS Accuses Your Business of ERTC Fraud

The Internal Revenue Service announced an “immediate moratorium” through at least the end of the year on processing new ERTC claims on September 14. 

“The IRS is increasingly alarmed about honest small business owners being scammed by unscrupulous actors, and we could no longer tolerate growing evidence of questionable claims pouring in,” IRS Commissioner Danny Werfel said of the move. 

Thousands of ERTC claims have been referred for audit by the IRS, so this is a very real thing businesses are already dealing with. Some have been referred for criminal cases, and business owners nationwide are contending with accusations of ERTC fraud. 

If you’ve been accused of ERTC fraud by the IRS, a tax professional may be able to help. They can assist you with a defense depending on what the federal agency is accusing you of in regard to your claim. 

For instance, if the IRS claims your ERTC application is fraudulent because your business didn’t qualify for the Employee Retention Tax Credit, but a tax attorney can prove it did, that should be a pretty straightforward case to defend. A skilled tax professional can also help you with things like documentation to show that your business didn’t try to defraud the IRS by incorrectly calculating the ERTC credit amount. 

You may also have other defenses, including inadmissibility of evidence, but it all really comes down to exactly what you’re being accused of and what a tax attorney can do for you. Ultimately, the key to defending yourself against an IRS ERTC fraud claim is getting the help of a good tax professional. 

Dayes Law Firm Provides ERTC Fraud Claim Assistance 

At Dayes Law Firm, we can help you with an audit defense or potentially with defending you and your business against an accusation of Employee Retention Tax Credit fraud from the IRS. 

The first thing you should do if you’re accused of ERTC fraud is evaluate the fraud claim carefully to see exactly why the agency is accusing you of being fraudulent with your application. You should also gather as much documentation and information related to your claim as possible and contact a tax attorney for help. 

The Dayes Law Firm team will defend any businesses with an ERTC audit in the present, or if there is ever a request for an audit in the future, and may be able to help you with an accusation of ERTC fraud. Our firm and our partner firms have already helped hundreds of business owners file for the Employee Retention Tax Credit and the filings represent more than $100 million in tax credits – proving that we know just about everything there is to know about the tax credit program. 

Please contact us today to see how we may be able to help you with your specific circumstances. We can offer a free, no-obligation consultation where our tax professionals can best advise you on what your next steps should be. Please give us a call at (800) 503-2000 to learn more – we’re ready to help.