IRS Employee Retention Credit Audits (ERC)

The Employee Retention Credit (ERC) was a valuable tool that businesses used to survive during the COVID-19 pandemic, allowing employers to keep more employees on payroll while business operations suffered. The ERC is claimed on an IRS Form 941 or 941-X to reduce an employer’s employment tax liability and allow employers to receive a refund of federal tax deposits paid. The IRS is closely reviewing tax returns claiming the ERC. This includes denying ERC claims for businesses who may have been legally entitled to claim the ERC.

The former IRS attorneys at Holtz, Slavett & Drabkin advise clients on all aspects of the ERC. This includes helping clients through IRS ERC Audits, deciding whether to enter the re-opened ERC voluntary disclosure program (and helping clients through the VDP process), whether to withdraw ERC claims, and whether to file a refund lawsuit in U.S. district court or the Court of Federal Claims after the IRS denies an ERC claim. The tax attorneys at Holtz, Slavett & Drabkin also have shared their expertise on the ERC and IRS ERC audits with attorneys and accountants nationwide and have been quoted in legal publications about the ERC.