The Employee Retention Credit (ERC) was a tax credit created by the CARES Act to help businesses keep their employees on the payroll during the COVID-19 pandemic. The credit was available to businesses that met certain eligibility requirements, such as having a significant decline in gross receipts or being ordered to suspend operations by a government authority.
The ERC was a valuable tax break for many businesses, but it also came with some risks. The IRS has been auditing businesses that claimed the ERC, and some businesses have been required to repay the credit.
There are a number of factors that can increase the risk of an ERC audit, including:
The amount of the credit claimed.
The size of the business.
The industry the business is in.
The accuracy of the documentation supporting the credit claim.
If you are audited by the IRS, you must:
Request a copy of the audit report.
Appeal the audit results.
Get help as soon as possible.
Contact us if you have been audited or have any questions about ERC.
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