Business Tax IssuesHIGH URGENCY

ERC Claim Under IRS Scrutiny? Get Expert Resolution

The IRS is aggressively auditing and rejecting ERC claims. We defend legitimate claims and resolve problematic ones.

Critical Deadline

Varies—respond promptly to any IRS correspondence

Note: Strategy Sessions require a $250 analysis fee, applied 100% toward your final service.

Understanding ERC Claims

The Employee Retention Credit (ERC) was a COVID-era credit for businesses that retained employees. Due to aggressive marketing by 'ERC mills,' many businesses filed questionable claims. The IRS has imposed a moratorium on processing new claims and is auditing existing ones. If your ERC claim is disallowed, you may owe the credit back plus significant penalties and interest. We help legitimate claimants defend their credits and those with problematic claims resolve the issue proactively.

IRS Authority: IRC § 3134, Notice 2021-20

What Happens If You Don't Act

✗Full repayment of disallowed ERC credit

✗Accuracy-related penalty of 20% on underpayment

✗Potential fraud penalty of 75% in egregious cases

✗Interest from original refund receipt date

✗Criminal investigation in fraud situations

✗Promoter issues may not protect you from liability

How The Tax Pro Advisor Resolves This

Helping Austin and Leander business owners resolve erc claims issues with proven strategies and direct IRS representation.

1Evaluate legitimacy of your ERC claim

2Gather documentation supporting eligibility

3Respond to IRS audit inquiries

4File amended returns through Voluntary Disclosure Program

5Withdraw pending claims if appropriate

6Negotiate penalty abatement for honest mistakes

IRS Forms & Documents We Prepare

Form 941-X (Amended Employment Return)Documentation of eligibilityVoluntary Disclosure ApplicationAudit Response PackageForm 843 (Penalty Abatement)

Frequently Asked Questions

What is the Employee Retention Credit issue?

Many businesses claimed ERC based on aggressive promoter advice. The IRS is now auditing these claims and disallowing those that don't meet strict eligibility requirements, requiring repayment plus penalties.

How long do I have to respond to an ERC audit?

You should respond promptly to any IRS correspondence, typically within 30 days. If you proactively realize your claim was improper, the IRS Voluntary Disclosure Program offers reduced penalties.

Can I settle this for less than I owe?

While the credit itself must be repaid if disallowed, penalties may be abated through reasonable cause or the Voluntary Disclosure Program. We work to minimize the total impact.

Related IRS Issues

Penalty Abatement 941 Payroll Tax CP2000 Notice

Don't Wait Until It's Too Late

The longer you wait, the fewer options you have. Get a free, confidential consultation to understand your situation and next steps.