ERC Audit Support

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Who is at risk for an ERC Audit?

Claiming ERC does not automatically subject a company to audit; however, some of the claims that are more likely to be reviewed include:

Businesses with large ERC claims,
Aggressive, inconsistent, or poorly documented claims,
Credits for periods with questionable eligibility, and
Rapid or maximum credit claims across multiple quarters.

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Why are ERC Audits occurring?

ERC has long been on the Internal Revenue Service’s “Dirty Dozen” list, due to a high incidence of improper claims. Additionally, the criteria to claim ERC is complex, and often misunderstood by claimants, especially those using ERC mills, as those third parties focused on volume instead of compliance and quality.

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We've already claimed, what next?

Companies that have already claimed the ERC can take steps to mitigate audit risks:

Conduct an internal review of any ERC claims.
Compile available data and records utilized in preparation of the claims such as:
- government orders that affected your business,
- quarterly gross receipts comparisons,
- payroll records,
- operational modification logs, and
- documentation of compliance with COVID restrictions.

Have a tax professional conduct a pre-audit review of the claims and documentation to provide compliance feedback.

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Where is my ERC Claim?

There is currently no mandated timeline for the IRS to refund ERC claims. Additionally, the IRS can request additional information to validate claims before approving refunds. The statute of limitations for assessment for ERC claims was extended to five years for certain quarters.

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Need Assistance With An ERC Audit?

Schedule a Call With Us Today

CTI’s tax experts are here to help ease concerns and provide support for ERC claims and questions.

Our professionals have completed ERC studies since the inception of the program and are deeply knowledgeable in all aspects of an ERC claim.

With a proven track record of successful outcomes in ERC examinations, our experienced team of attorneys and tax professionals provide end-to-end audit representation to ensure our clients are supported in all aspects of a claim review.

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Work Opportunity Tax Credit (WOTC)

WOTC grants tax credits towards an employer’s income tax liability. Credits range from $1,200 to $9,600 per qualified new hire, depending on the new hires’ WOTC target group.

Learn More

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State Hiring Incentives

Many states offer hiring credits like the WOTC for job creation. We call these “piggyback credits” since we can capture the state credits simultaneously when screening for the WOTC.