Employee Retention Tax Credit (ERC) Risk Assessment

The IRS is aggressively targeting ERC claims for audit. If you have previously claimed an employee retention tax credit (ERC) under the CARES Act, here’s why it may help to get a second opinion and have a risk assessment performed.

Do You Need a Second Opinion on Your ERC Credit?

The Employee Retention Tax Credit (ERC or ERTC) provided under the CARES act provides much-needed support to businesses adversely affected by the pandemic. However, unscrupulous third-party tax credit preparers have taken advantage of many small business owners and pushed them into claiming ERC credits they may not have been eligible for, putting owners at risk of IRS audits and facing potentially serious financial consequences for their business.

At Wiggam Law, we can review your ERC claim and help you prepare for a potential ERC audit so that the IRS won’t catch you off guard.

Why Do You Need ERC Risk Assessment?

Ever since the ERC became widely available for businesses to claim, there has been a boom in unscrupulous third-party preparers making overly promising claims about businesses’ eligibility for ERC credit and leading clients to claim credits they may not have been eligible for. For this reason, the IRS has begun to audit many ERC claims.

If you are audited, you will need to defend your claim. A small business owner who claimed ERC credit they did not qualify for on the advice of one of these predatory preparers could potentially end up owing back taxes that can cause serious financial doom for the company.

Having an ERC risk assessment performed by a trusted tax professional will help you prepare for the possibility of an audit, defend your ERC claim, and offset the consequences of a potential ERC audit.

Warning Signs of a Aggressive ERC Credit Preparer May Include:

  • Promising tax savings that are “too good to be true”

  • Assuring clients of their eligibility before conducting thorough reviews of their finances

  • Claiming all businesses in a given vertical are eligible

  • Claiming to have had special ERC-related training from the IRS

  • Taking large upfront fees or contingency fees based on the amount of the ERC refund

  • Not providing clear and detailed information about ERC eligibility criteria

To learn more about the risk of an ERC audit affecting your business, download our free informational ERC whitepaper:

Wiggam Law is leading the fight in ERC Defense

If you have a heightened risk of being audited for the ERC, we’re here to provide you with a detailed risk assessment investigation that can help you understand whether or not your business is eligible for ERC credit and what options you have for mitigating the consequences of an audit. We can help you through every step of the audit defense process.

We’re here to help you protect yourself and your business if worse comes to worst.

We Are the Tax Professionals Who Treat You Like Family

At Wiggam Law, we know tax issues can happen to anybody. We also know that having tax issues or owing tax debt doesn’t make you a bad person—they just make you one of many people and businesses who can use our help..

Our tax law experts are dedicated to helping you end the burden of tax trouble and keep what is most precious to you safe.

Have Questions About the ERC Claim? We’re Here to Help.

Call us at 470-468-5439 or contact us to schedule your consultation today