What happens if you are ever Audited? Are you protected?

If you're a business owner who has applied (or is considering applying) for the Employee Retention Tax Credit (ERTC), you may be wondering what could happen in the future if you get audited by the IRS. This is an important question to consider, as audits can be time-consuming, stressful, and potentially costly.

Below, we'll explore what you need to know about the ERTC, the documentation and evidence you may need to support your eligibility for the credit, and what could happen if you are audited in the future. We'll also discuss the importance of obtaining an opinion letter from an attorney in the event of an audit.

What is the Employee Retention Tax Credit?

The Employee Retention Tax Credit (ERTC) is a refundable tax credit that was created as part of the CARES Act in March 2020. It was designed to help businesses that were affected by the COVID-19 pandemic by providing a credit against certain employment taxes.

The credit is available to eligible employers who:

· Were carrying on a trade or business during 2020 or 2021

· Experienced a significant decline in gross receipts during the pandemic

· Were subject to a full or partial suspension of operations due to a government order related to COVID-19

· Paid qualified wages to their employees during the pandemic

The ERTC is worth up to $5,000 per employee for 2020 and up to $7,000 per employee per quarter for 2021, and it can be claimed on your business's quarterly payroll tax returns. In total, the IRS could potentially issue your business a check for up to $26,000 per employee.

What documentation and evidence do you need to support your eligibility for the credit?

If you're planning to apply for the ERTC for your business, it's important to keep accurate records and documentation to support your eligibility for the credit. This may include:

· Documentation showing the decline in gross receipts for the relevant quarters

· Government orders that resulted in a full or partial suspension of operations

· Records of the number of employees and their wages and hours worked

· Evidence that the wages were paid during the relevant quarters

· Any other documentation that shows you meet the eligibility requirements for the credit

It's a good idea to consult with an attorney to ensure that you have all the necessary documentation and evidence to support your eligibility for the credit.

What could happen if you get audited in the future?

If you apply for the ERTC and are audited by the IRS in the future, the IRS may request documentation and evidence to support your eligibility for the credit. This means that you will need to have accurate records and documentation to show that you met the eligibility requirements for the credit.

If the IRS determines that you were not eligible for the credit, you may have to repay the credit, and you may also be subject to penalties and interest. It's important to keep accurate records and documentation to support your eligibility for the credit in case of an audit.

The importance of obtaining an Opinion Letter

In addition to accurate records and documentation, obtaining an opinion letter from an attorney can be a critical tool in defending your eligibility for the credit during an audit. An opinion letter is a written statement from an attorney that explains the legal basis for your eligibility for the credit and provides a detailed analysis of the relevant legal issues.

Given the complex and rapidly evolving nature of tax laws and regulations, obtaining an opinion letter from an experienced tax attorney is strongly recommended. An attorney can review your specific circumstances and provide you with an informed and detailed legal analysis that is tailored to your business. They can help you identify potential legal issues that may arise during an audit and provide guidance on how to address them. This can be particularly important if your business is large or has complex tax issues.

While obtaining an opinion letter may involve additional costs, the potential benefits of having one in defending against an IRS audit can far outweigh the costs. By providing a legal opinion that is both detailed and persuasive, an opinion letter can help to prevent an audit from turning into a prolonged and costly legal battle. Additionally, the mere fact that you have obtained an opinion letter can demonstrate to the IRS that you have taken proactive steps to ensure your compliance with the law and may help to deter any further inquiry.

Get it all done in one place

Don't let the Employee Retention Tax Credit slip through your fingers! If your business has been impacted by the COVID-19 pandemic, you could be eligible for a valuable source of financial relief. But beware, applying for the credit can be tricky, and an audit could turn into a legal nightmare without the proper documentation and support.

That's why obtaining an opinion letter from an attorney is critical to defend your eligibility and prevent costly legal battles. Our law firm can provide you with a clear and persuasive explanation of why you deserve the credit, and we'll guide you through the process every step of the way.

Don't wait until it's too late to secure the financial relief your business needs. To speak with a member of our team to provide the guidance you need to claim the Employee Retention Tax Credit.

To Book your FREE Pre-Qualification 10-15 minute phone call click on the link below:

Click on this booking link:  https://app.lawmatics.com/forms/share/e74222ae-65e3-42ee-baab-368be940bb00 

NOTE:  This money does not have to be paid back, ever.

We can tell you in 10 Minutes if your business qualifies for this tax credit, because we’ve set up our Consultations to be as quick and efficient as possible.

• You don’t need to prepare for this Consult
•  You don’t need to bring any revenue information
• We’ll simply talk about your business, to see if you were affected by the COVID-19 pandemic and government shutdown orders
• This only takes 10 Minutes

All you need to do is click here on this link:   https://app.lawmatics.com/forms/share/e74222ae-65e3-42ee-baab-368be940bb00  and we’ll set up a time to discuss if you qualify for this tax credit…  

We’ll quickly be able to tell you whether or not we can help your business…and if we can’t help you, there is no fee.

We’ll get some basic background information…

• What type of business you have
• What type of law you practice (if you have a law firm)
• How many employees you have
• What you’re going to do with all the extra money you get (just kidding)

If you have 5 or more employees make the call!

If you have 2-4 employees, please visit our FAQS page and contact us personally.

This government program is set to expire, and once it’s gone…it’s gone forever.