ERTC Audits By The IRS

The Importance of Hiring a Tax attorney for Defense

The Employee Retention Tax Credit (ERTC) is a federal tax credit that was created to help businesses keep their employees on the payroll during the COVID-19 pandemic. Businesses that qualified for the ERTC could claim a credit of up to 70% of the qualified wages they paid to their employees between March 13, 2020, and December 31, 2021.

While none of our clients have come under audit, the IRS has been auditing businesses that claimed the ERTC to ensure that they were eligible for the credit and that they calculated the credit correctly. If the IRS determines that a business claimed the ERTC incorrectly, the business may be required to repay the credit, plus interest and penalties.

If your business is audited by the IRS for claiming the ERTC, it is important to hire an experienced ERTC audit tax tax attorney to represent you. A ERTC audit tax attorney can help you understand the audit process and protect your rights. They can also negotiate with the IRS on your behalf and represent you at the appeal hearing if necessary.

Here are some of the benefits of hiring a ERTC audit tax attorney such as Pietro Canestrelli

Knowledge of the ERTC rules and regulations. ERTC audit tax attorney have the knowledge and experience to help you understand the complex ERTC rules and regulations. They can help you identify any potential problems with your ERTC claim and develop a strategy to address them.

Experience with IRS audits. ERTC audit tax attorney have experience representing businesses in IRS audits. They know the audit process inside and out and can help you navigate it smoothly.

Negotiation skills. ERTC audit tax attorneys are skilled negotiators. They can negotiate with the IRS on your behalf to try to reduce the amount of tax you owe or to avoid penalties altogether.

Representation at the appeal hearing. If the IRS does not agree with your position, you may have the right to appeal the audit decision. A ERTC audit tax attorney can represent you at the appeal hearing and argue your case to the IRS Appeals Office.

Additional Considerations

In addition to the benefits listed above, there are a few other things to consider when deciding whether or not to hire a tax attorney for defense in an ERTC audit:

The complexity of your ERTC claim. If your ERTC claim is complex, or if there are any unusual circumstances surrounding your claim, it is a good idea to hire a tax attorney. A tax attorney can help you understand the complexities of your claim and develop a strong defense strategy.

The severity of the IRS audit. If the IRS audit is severe, or if you are facing potential criminal charges, it is essential to hire a tax attorney. A tax attorney can protect your rights and represent you throughout the audit process.

Your budget. Hiring a tax attorney can be expensive, but it is important to weigh the cost of hiring a tax attorney against the potential cost of repaying the ERTC, plus interest and penalties. In many cases, the cost of hiring a tax attorney is outweighed by the potential savings.

If you are audited by the IRS for claiming the ERTC, it is important to consider the benefits of hiring a tax attorney. A tax attorney can help you understand the audit process, protect your rights, and negotiate with the IRS on your behalf. By hiring a tax attorney, you can increase your chances of a successful outcome.

Here are some specific examples of how a ERTC audit tax attorney can help you in an ERTC audit

Review your ERTC claim. A ERTC audit tax attorney can review your ERTC claim to identify any potential problems. They can also help you gather the documentation you need to support your claim.

Represent you in communication with the IRS. A ERTC audit tax attorney can communicate with the IRS on your behalf and answer any questions they may have about your ERTC claim.

Negotiate with the IRS. If the IRS determines that you owe additional tax or penalties, a ERTC audit tax attorney can negotiate with them on your behalf to try to reduce the amount you owe.

Represent you at the appeal hearing. If you appeal the audit decision, a ERTC audit tax attorney can represent you at the appeal hearing and argue your case to the IRS Appeals Office.

If your business is audited by the IRS for claiming the ERTC, it is important to take the matter seriously. An ERTC audit can be complex and time-consuming, and the stakes are high. By hiring an experienced ERTC audit tax attorney, you can increase your chances of a successful outcome.

Contact the Law Office of Pietro Canestrelli today to learn more about how we can help you with your ERTC audit defense.