Ensure the Validity of Your ERTC Claim

Protect Your Business from Fraudulent ERTC Claims

At Pennywise Tax Strategies, we understand the importance of the Employee Retention Tax Credit (ERTC) for your business. However, in light of recent concerns about questionable ERTC claims and IRS audits, it's vital to ensure the accuracy and compliance of your ERTC filing.

Why Review Your ERTC Claim Now?

The Challenge of ERTC Scams

In recent months, there has been an alarming increase in ERTC-related scams perpetrated by pop-up and fly-by-night ERTC processing companies. These entities encourage businesses to claim the Employee Retention Credit without conducting a thorough assessment of their eligibility, without properly documenting eligibility or the calculations of the credits, or, in some cases, by committing outright fraud.

Our firm has reviewed several claims by ERC mills for our clients, and in MOST CASES WE HAVE FOUND ERRORS in the filings.

Rising Audit Risks

The IRS has responded to this trend by initiating Information Document Requests (IDRs) for businesses with suspicious ERTC claims. The upsurge in ERTC audits serves as a stark reminder of the importance of verifying your claims before the IRS takes action.

Improperly filed ERTC claims through questionable providers can result in penalties and interest. With the IRS temporarily suspending the processing of new ERTC claims, it's a prudent time for business owners to have their ERTC filings reviewed by reputable and experienced firms.

IRS Urges Caution

The IRS has underscored the need for caution by temporarily halting the processing of new ERTC claims until the year's end. This underscores the importance of verifying the legitimacy of your claims to avoid potential penalties and interest.

Selecting a Reliable ERTC Partner

Ensure you've chosen a trusted ERTC provider by asking these critical questions:

  • Deep IRS Expertise: Does your ERTC partner possess a comprehensive understanding of IRS ERTC rules and eligibility requirements?
  • Proven Track Record: Can your ERTC partner demonstrate a history of successfully processing ERTC refunds, supported by case studies or satisfied clients?
  • Transparent Fee Structure: Is your ERTC partner transparent about their fees, with reasonable upfront costs and no excessive contingency fees?
  • Robust Quality Control: Does your ERTC partner have documented processes and quality control measures to ensure precision and efficiency in processing ERTC claims?
  • Commitment to Compliance: Has your ERTC partner consistently updated their qualification guidelines to stay current with evolving IRS regulations, demonstrating a commitment to accurate and up-to-date assistance?

Gain Peace of Mind with ERTC Filing Review

If you have doubts about the validity of your Employee Retention Credit claim, our ERTC Filing Review service is designed for you. Our comprehensive review identifies potential red flags in your ERTC claim and ensures you have the necessary documentation to substantiate your ERTC eligibility in case of an IRS audit.

Documentation for ERTC Compliance

To demonstrate ERTC compliance, businesses may require:

  • Detailed ERTC credit calculations for each employee.
  • A timeline and summary of relevant COVID-19 orders.
  • Documentation substantiating a 10% "nominal disruption."
  • A detailed employee count analysis.

What Our ERTC Filing Review Offers

Our team of expert tax credit analysts conducts a comprehensive examination of your ERTC claim, covering critical areas for ERTC compliance, including:

  • Detailed ERTC credit calculations for each employee.
  • A COVID-19 order timeline and summary.
  • Documentation substantiating a "more than nominal impact," as required by law.
  • A detailed employee count analysis.

Understanding the ERTC Audit Landscape

The IRS recently extended the statute of limitations from three to five years for tax amendments related to ERTC. This extension provides the IRS with an additional two years to conduct audits on businesses that lack substantial documented evidence of eligibility.

Penalties for ERTC Fraud

Miscalculated or improperly claimed ERTC credits can lead to:

  • Failure to deposit penalties and interest on underpaid tax.
  • Accuracy-related penalties for errors resulting from negligence or substantial understatement of income.
  • Interest charges on underpaid taxes.
  • Potential legal consequences in cases of intentional fraud, civil fraud, or willful misconduct.

Mitigating ERTC Audit Risk

To minimize the risk of ERTC audits and related penalties, consider these proactive steps:

  • Stay updated with IRS guidelines.
  • Collaborate with a reputable tax professional.
  • Maintain meticulous ERTC documentation.
  • Double-check ERTC calculations for accuracy.
  • Respond promptly to IRS requests for documentation.

While it's impossible to entirely eliminate audit risk, these measures can significantly enhance your preparedness.

Assistance for Your ERTC Journey

Whether you're facing an ERTC audit or require guidance on your ERTC claim, our dedicated team at Pennywise Tax Strategies is here to assist you. Contact us today to safeguard your business and ensure ERTC compliance.


Disclaimer: This landing page offers general information and should not replace professional tax advice. Contact our firm for specific ERTC guidance and audit concerns.

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