ERC Audits & IRS Notices - Risk Management
- If your previous provider did not provide you the appropriate documentation for your ERC filings, we can review your calculations and specific facts and circumstances.
- Prepare a technical summary of applicable business facts and circumstances, qualification of eligibility, ERC calculations with related methodology, and documentation to substantiate eligibility and qualified wages.
- Review your case for potential issues that could lead to disallowance and proactively address any discrepancies to strengthen your position. Gather and organize all necessary documentation to ensure you’re fully prepared for an IRS audit, minimizing the risk of disallowance.
- Develop tailored strategies to defend your tax positions, ensuring the best possible outcome and minimizing any financial impact of the audit.
Represent you during the audit process, handling all communication with the IRS and ensuring your rights are protected - If a disallowance occurs, we guide you through the appeals process, negotiating with the IRS to seek a favorable resolution or a reduced penalty.
With the ERC Audits & Disallowances, Complexity Abounds
While the steps to complete the ERC process may have originally seemed straightforward, there is a sea of complex issues that must be successfully navigated to successfully survive an IRS examination. That's where Reinsman comes in. We know how to address these issues and will help you navigate the business-specific pitfalls that the ERC often presents.
Some examples of complexity include:
- Mergers and Acquisitions
- Complex structures and aggregate employer rules
- Newly formed entities
- Full time IRC 4980(h) headcount analysis
- Government order analysis and application
- Interpreting guidance and eligibility scenarios
- National policy considerations
- Payroll data analysis
- 2020 rules vs 2021 rules
- Application of the "more than nominal" test for business presence and impact
- International revenue considerations
- Hedging gains and losses
- Optimizing multiple programs
- Individual program rules and program integration, including HHS Provider Relief Funds, PPP loan forgiveness, FFCRA paid leave, Restaurant Revitalization grants, etc.
- Calculation rules for each potential credit period