Pricing & Fees
How Much Does an ERC Audit Attorney Cost?
Fee ranges for ERC audit defense, voluntary disclosure, and refund litigation — plus how to think about cost when the credit at stake is six or seven figures.
Sam Brotman, J.D., LL.M.
ERC audit defense runs $7,500 to $25,000 in flat or hourly fees. ERC refund litigation in federal district court or the Court of Federal Claims runs $25,000 to $100,000+. Voluntary disclosure (the IRS ERC-VDP program) typically runs $5,000 to $15,000.
The Employee Retention Credit was claimed by more than a million businesses, and the IRS is auditing aggressively. Pricing for ERC defense depends on where in the lifecycle the matter sits: audit, appeal, litigation, or voluntary disclosure before any of those phases.
Fee Ranges by ERC Engagement Type
| Engagement Type | Typical Fee Range | Fee Structure |
|---|---|---|
| ERC audit defense (one entity, single quarters) | $7,500 – $15,000 | Flat fee |
| ERC audit defense (multi-entity / multi-quarter) | $15,000 – $35,000 | Flat or hourly |
| ERC IRS Appeals (after audit closes) | $7,500 – $20,000 | Flat or hourly |
| ERC refund lawsuit (district court / CFC) | $25,000 – $100,000+ | Hourly or hybrid |
| ERC voluntary disclosure (ERC-VDP) | $5,000 – $15,000 | Flat fee |
| ERC withdrawal of pending claim | $2,500 – $5,000 | Flat fee |
| ERC promoter penalty defense | $25,000 – $75,000+ | Retainer + hourly |
What Drives ERC Defense Costs
- Eligibility theory. Government order shutdowns are document-heavy to prove. Significant decline in gross receipts is straightforward to verify. The defense scope depends on which theory was used to claim the credit.
- Number of quarters claimed. Each quarter is a separate eligibility analysis. A business that claimed all six eligible quarters needs six analyses; a business that claimed two needs two.
- Promoter involvement. If the claim was prepared by a high-volume ERC mill, the documentation is often inadequate and the defense involves rebuilding the eligibility file from scratch. This is more expensive.
- Aggregation rules. Related entities under common control are aggregated for ERC purposes. Multi-entity audits are materially more work.
When to Withdraw, When to Disclose, When to Defend
If you have not received the ERC refund yet, you can withdraw the claim. If you received the refund and have eligibility concerns, voluntary disclosure (ERC-VDP) is materially cheaper than fighting an audit. If you are confident in eligibility, defend the audit.
The decision depends on three things: whether you have the refund yet, the strength of your eligibility documentation, and the credit amount at stake. Our voluntary disclosure page covers the ERC-VDP framework. Our audit defense page covers the audit work directly.
ERC Refund Lawsuits
The IRS has slow-walked legitimate ERC refunds. If you have a properly documented claim that has been pending more than six months without action, you may have standing to file a refund suit in federal district court or the Court of Federal Claims. These cases are more expensive than administrative defense but can recover credits the IRS will not otherwise process. See ERC litigation for the details.
How We Quote ERC Engagements
The IRS has slow-walked legitimate ERC refunds. If you have a properly documented claim that has been pending more than six months without action, you may have standing to file a refund suit in federal district court or the Court of Federal Claims. These cases are more expensive than administrative defense but can recover credits the IRS will not otherwise process. See ERC litigation for the details.
ERC Notice or Audit?
Send us the notice. We will tell you whether to withdraw, disclose, or defend.
Frequently Asked Questions
ERC Audit Attorney Cost FAQs
My ERC claim was prepared by a promoter who took 20%. Are they liable too?
The promoter may face penalties under IRC §6700 and §6701, but those penalties run against the promoter, not against you. You remain on the hook for the underlying tax. Some clients have viable claims against promoters for malpractice, but that is a civil matter separate from the IRS defense.
How long do ERC audits take to resolve?
Typical IRS ERC audits resolve in 6 to 18 months from the initial information document request. Appeals add another 6 to 12 months. Refund lawsuits can take 18 to 36 months. The slow pace is one reason the IRS prefers ERC-VDP for taxpayers who want to resolve faster.
If I withdraw my ERC claim, do I owe penalties?
Generally no. The IRS withdrawal procedure (announced in October 2023) allows you to pull back a pending claim without penalties if you have not yet received the refund. You file Form 941-X amendments and the original claim is treated as if it had not been filed.
How does ERC-VDP work financially?
Under ERC-VDP, you pay back 80% of the ERC you received and keep 20%. There is no separate penalty on top of that, no interest if paid in full at submission, and the matter is closed administratively. Compared to a contested audit where you may owe 100% plus penalties and interest, the math usually favors VDP.
What if my ERC claim is legitimate and I want to fight the audit?
Then we defend it. Many ERC claims are legitimate — the credit was real and Congress created it intentionally. We have seen the IRS push hard on weak eligibility arguments, particularly on the government-order theory. If your documentation supports the credit, the audit is winnable.
Can the IRS pursue criminal charges on an ERC claim?
In egregious cases, yes — particularly where claims were knowingly inflated or where promoters helped clients fabricate eligibility. Most ERC matters are civil, but the line moves when there is intentional misrepresentation. If you have any concern about the underlying claim, raise it in the first call so we can analyze the criminal exposure separately.
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