What Steps Does the IRS Suggest to Choose an ERTC Tax Pro?

December 20, 2023
Dayes Law Firm

When you file for the Employee Retention Tax Credit (ERTC), your business may be served by choosing a tax professional to be on your side. The government introduced this tax credit through the Coronavirus Aid, Relief, and Economic Security (CARES) Act to help struggling businesses during the COVID-19 pandemic. Now, business owners can file for the credit retroactively.

However, you may benefit from these tips on how to choose an ERTC tax professional. The ERTC has already seen many revisions, and the process for filing can be complex. Having a dependable ERTC tax professional may save your business time and money.

Six Steps to Choose an ERTC Tax Professional

When filing an ERTC claim, you may be helped by guidance from a professional tax attorney you can trust. Follow these steps to choose an ERTC tax professional.

1. Choose a Type of Tax Professional

To choose an ERTC tax professional, you must first choose which type of tax professional you want to work with. Various professionals, including accountants, agents, and attorneys, offer tax return services. Each has a different level of education, skills, and experience. The more experience someone has, the more their services will likely cost.

The type of professional you choose is a personal choice, but before you make any commitments, ensure the tax preparer has an IRS Preparer Tax Identification Number (PTIN). 

2. Research Their Credentials 

The IRS offers a Directory of Federal Tax Return Preparers with Credentials and Select Qualifications. This makes the search for qualified tax preparers in your area simpler. 

In addition to a PTIN, research if the tax preparers you’re considering have unlimited representation rights or limited representation rights. Unlimited representation rights belong to attorneys, enrolled agents, and certified public accountants. These parties may represent you in audits, appeals, and similar issues. 

On the other hand, preparers with limited representation rights cannot represent you if they did not prepare your tax return. They also cannot represent you in matters involving appeals or collection issues.

3. Avoid Scammers

The IRS lists direct mail solicitations, large upfront fees, aggressive broadcast advertising, and fees depending on your ERTC refund as red flags. 

It’s essential to avoid these scams, as should you make a fraudulent ERTC claim, even unknowingly, you can face penalties or criminal charges.

4. Have an Initial Consultation 

Many tax preparers will offer a free initial consultation. This allows both of you to decide if the partnership will be a good arrangement. During this consultation, they should answer all of your questions with professionalism and patience. Specifically, ask them about their experience with the ERTC. They should have extensive knowledge of eligible employers, IRS requirements, and relevant tax documents. 

If they dodge questions or rush this conversation, they might not be who you want to work with. 

5. Seek Audit Protection and Liability Coverage 

The IRS conducts audits on ERTC claims, tax returns, and supporting documentation. You want your tax preparer to offer audit protection so you have extra support should the IRS audit your claim. Additionally, ask about professional liability insurance. This can act as extra protection during the ERTC claims process. 

6. Evaluate Their Reputation

Look online to find recent reviews from past clients. You can also evaluate their client base through their client portfolio, which will allow you to see if they’ve worked with businesses like yours before. 

Dayes Law Firm Is Here to Serve as Your ERTC Tax Professional 

Knowing how to choose an ERTC tax professional can be a challenge. Dayes Law Firm has already helped hundreds of businesses collect over $100 million in tax credits. Our ERTC recovery team has carefully tracked the evolution of the ERTC and can advise you on filing an accurate, valid claim. Contact us today at 800-503-2000 for a free consultation.