ERC Services
ERC Audit Defense
Protect Your Credit.
The IRS is aggressively auditing Employee Retention Credit claims. We've defended over $160 million in ERC credits and know exactly how to protect your claim.
Sam Brotman, J.D., LL.M.Key Takeaway
The IRS is auditing ERC claims using a formulaic approach. Knowing their playbook — what documents they request, what arguments they make — allows you to build the strongest possible defense from day one.
The IRS Is Coming After ERC Claims. Is Yours Protected?
The IRS has made ERC enforcement a top priority. They've flagged hundreds of thousands of claims for examination, and the audits are aggressive. Disallowance letters, proposed adjustments, and penalty assessments are hitting business owners who legitimately claimed the credit — and those who didn't qualify are facing even worse outcomes.
Many ERC claims were prepared by promoters who used aggressive or incorrect methodologies. If your claim was prepared by a third-party promoter, you may be especially vulnerable to audit. But even well-prepared claims face scrutiny in this environment.
We've been defending ERC claims since the credit was enacted. We understand the eligibility rules, the calculation methodologies, and the specific issues the IRS is targeting in audits. For a complete overview, read our comprehensive ERC guide.
From Our Practice
We've defended ERC claims through every stage of the IRS audit process — from initial information requests to full examinations. The IRS is using a formulaic approach to ERC audits, and knowing their playbook allows us to anticipate objections and build the strongest possible defense.
What We Handle
ERC Audit Services
ERC Examination Defense
Full representation during IRS examination of your ERC claim. We respond to information requests, prepare documentation, and negotiate with the examining agent.
Eligibility Verification
We review your claim's eligibility basis — government orders, gross receipts decline, or supply chain disruption — and build the evidentiary case to support it.
Calculation Review
If the IRS challenges your credit calculation, we verify qualified wages, health plan expenses, and aggregation rules to defend every dollar.
Disallowance Defense
Received a disallowance letter? We file formal protests and represent you through the appeals process to reverse incorrect IRS determinations.
Penalty Defense
The IRS is asserting accuracy-related penalties and even fraud penalties on ERC claims. We defend against all penalty assessments with reasonable cause and good-faith arguments.
Promoter Claim Repair
If your claim was prepared by an aggressive promoter, we review and — if necessary — amend or withdraw claims before the IRS initiates enforcement.
Understanding the Process
ERC Audits: What You Need to Know
Why is the IRS targeting ERC claims?
The IRS estimates that a significant percentage of ERC claims are improper — either ineligible, overcalculated, or fraudulent. With over $230 billion in claims filed, the enforcement effort is massive. The IRS has dedicated special teams specifically to ERC examination.
Even legitimate claims are being scrutinized because the volume of improper claims has created a presumption of skepticism among examiners.
What does an ERC audit look like?
ERC audits typically begin with a letter requesting documentation: government orders that affected your business, payroll records, financial statements showing gross receipts, and the workpapers behind your credit calculation.
The IRS examiner will verify eligibility, recalculate qualified wages, check aggregation rules for related entities, and assess whether your claim methodology was correct.
What if my ERC claim was prepared by a promoter?
Many promoters used aggressive or incorrect methodologies. If your claim is inaccurate, you have options: the IRS Voluntary Disclosure Program allows you to withdraw improper claims with reduced penalties, or we can amend your claim to correct errors.
If your claim is legitimate but poorly documented, we rebuild the supporting evidence to defend the credit on audit.
Can I still claim the ERC?
The IRS placed a moratorium on processing new ERC claims starting September 2023. While the moratorium has been partially lifted, processing remains slow and scrutiny is high. We help clients navigate the current landscape and determine the best path forward.
Talk to a Tax Attorney
Not Sure Where You Stand?
Schedule a free 15-minute call. We'll assess your situation, outline your options, and tell you exactly what to expect — no obligation.
Book Your Free Callor call (619) 378-3138
Why Brotman Law
$160M+ in ERC Credits Defended
$160M+ Defended
We've defended over $160 million in ERC credits. We know what the IRS is looking for and how to protect your claim.
ERC Since Day One
We've been working with ERC claims since the CARES Act was enacted. Our experience spans the full life cycle of this credit.
Eligibility Expertise
Government orders, gross receipts tests, supply chain disruption — we understand every eligibility pathway and how to prove it.
Promoter Claim Experience
We've reviewed and repaired hundreds of promoter-prepared claims. We know the common errors and how to fix them.
Appeals Track Record
When the IRS disallows a legitimate claim, we take it to appeals and fight for every dollar of credit you're entitled to.
Penalty Defense
We aggressively defend against ERC penalties, including accuracy-related and fraud penalties that can exceed the credit amount.
Learn More
ERC Guides & Resources
ERC Guide
Our comprehensive guide to the Employee Retention Credit — eligibility, calculations, and current IRS enforcement.
Read the Guide → Free GuideERC Appeals
If your ERC claim was denied, learn about the appeals process.
Read the Guide → Free GuideERC Litigation
When appeals aren't enough — litigation options for denied ERC claims.
Read the Guide →
