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ERTC Audits

How We Can Help With Compliance and IRS Scrutiny

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The Employee Retention Credit (ERC) was a crucial lifeline for businesses throughout the COVID-19 pandemic, but as the IRS clears the backlog and intensifies compliance efforts, understanding the audit landscape is key. At Tax Resolution Solutions, we provide expert support and guidance for business owners facing ERTC audits, ensuring federal compliance and mitigating risks.

As the IRS shifts focus from processing a surge of ERTC claims to scrutinizing potential fraud and inaccuracies, businesses need to be prepared for audits. Current IRS Commissioner Danny Werfel's recent warnings about aggressive marketing and dubious submissions highlight the importance of careful ERTC claim handling.

Why ERTC Audits Are on the Rise

With the pandemic officially over, the IRS observed a decline in legitimate claims and a surge in questionable submissions influenced by misleading marketing. This shift prompted the IRS to stop accepting new ERTC applications in the Fall of 2023. Subsequently, the tax agency enhanced its compliance efforts by doubling down on investigative efforts. IRS officials remain committed to looking into both promoters and businesses filing dubious claims.

ERTC Eligibility and Compliance

The ERTC, designed to aid businesses during the pandemic, has strict eligibility criteria. Businesses must have faced government-ordered suspensions or significant declines in gross receipts. As ERTC audits become more frequent, understanding and adhering to these criteria is vital to avoid penalties.

To combat misleading marketing, the IRS is increasing audit and criminal investigation activities related to the Employee Retention Tax Credit. The goal here is to identify fraud and ensure that businesses claiming the credit meet all qualifications.

How We Can Help

At Tax Resolution Solutions, we specialize in ERTC matters, offering comprehensive support to businesses facing audits. Our services include:

Claim Accuracy Review: Ensuring your ERTC claim is accurate and aligns with IRS guidelines.

Documentation Assistance: Helping you gather and organize relevant documents to support your legitimate ERTC claim, improving the odds that you will be approved without issue.

Audit Preparation: Guiding you through the steps to prepare for an ERTC audit, minimizing potential risks to your business’s future.

Compliance Consulting: Providing ongoing support to ensure your business remains compliant with ERTC regulations.

Mitigating ERTC Audit Risks

While an audit is a possibility, there are proactive steps businesses can take to reduce the risk. The team at Tax Resolution Solutions assists Delaware business owners with the following:

Up-to-Date Information: We regularly review IRS guidelines to stay updated on ERTC requirements. We will pass any pertinent information along to you promptly.

Professional Guidance: We are here to answer any questions you may have about your business finances, and whether or not you have a valid ERTC claim.

Thorough Documentation Management: We can help you maintain organized records supporting your ERTC claim to streamline the audit process, should it occur.

Prompt Response: We are here to make sure you cooperate fully with the IRS, responding quickly and accurately to any requests for additional information.

ERTC Audit Penalties

Understanding the potential penalties for inaccurate ERTC claims is crucial. Penalties may include a bill for underpayment of taxes, accuracy-related penalties, interest charges, and legal consequences. Tax Resolution Solutions can help businesses navigate these challenges and ensure a favorable outcome.

ERTC audits are becoming more prevalent as the IRS intensifies compliance efforts. With the right support and proactive measures, businesses can work through these audits successfully. At Tax Resolution Solutions, we're committed to helping Delaware businesses stay ERTC compliant and secure a stable financial future.

For expert ERTC audit support, reach us at (833) 477-6583 or

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