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ERC Audit Defense: The Role of a Tax Litigation Attorney


When it comes to defending your business against an Employee Retention Credit (ERC) tax audit, the guidance and expertise of a tax litigation attorney are paramount. As the Internal Revenue Service (IRS) intensifies its scrutiny of ERC claims, organizations must proactively prepare for potential audits to safeguard against repayment or denial of refunds. Businesses are exposed for more time than is usual for an ERC tax audit. Most tax audits must be completed within three years of the filing date of the tax return. On the other hand, Congress provided a special 5-year statute of limitations to audit ERC claims. This page highlights the crucial role of a tax litigation attorney in ERC audit defense and emphasizes the specialized expertise of Brager Tax Law Group in representing clients in ERC audits.

I. Understanding the Significance of ERC Audit Defense

As businesses claim the ERC, the risk of an audit by the IRS grows significantly. An IRS official stated last year that the IRS had trained 300 revenue agents in the intricacies of auditing ERC claims. The IRS is targeting the ERC because it perceives that many of the claims filed have been improper, if not downright fraudulent. The consequences of an unsuccessful ERC tax audit can be financially detrimental, especially when potential penalties are taken into account. This underscores the need for a skilled tax litigation attorney to navigate the complexities of ERC audit defense with confidence.

II. The Expertise of a Tax Litigation Attorney

a) In-Depth Knowledge of Tax Laws and Regulations

A tax litigation attorney possesses comprehensive knowledge of tax laws and regulations, allowing them to effectively interpret and apply relevant provisions to ERC claims to this complicated area of tax law. They stay updated on the latest developments, ensuring that your tax defense strategy aligns with current regulations and mitigating the risk of compliance errors.

b) Skillful Documentation and Evidence Preparation

One of the critical aspects of ERC audit defense is the preparation of thorough and well-documented evidence to substantiate your claim. A tax litigation attorney can guide you in collecting and organizing the necessary documentation, ensuring its relevance and compliance with IRS guidelines. This meticulous approach significantly strengthens your defense against a tax audit.

c) Effective Communication and Negotiation

During an ERC audit, effective communication and negotiation skills are paramount. A tax litigation attorney acts as your representative, engaging with the IRS on your behalf. They can articulate your position persuasively, address any concerns raised by the IRS, and negotiate favorable outcomes, minimizing potential penalties or repayment obligations. If necessary, a tax litigation attorney can represent you in an appeal, including an appeal to the United States Tax Court.

III. The Expertise of Brager Tax Law Group in ERC Audit Defense

Brager Tax Law Group is well known for its expertise in defending clients in tax audits of all kinds, offering comprehensive guidance and representation throughout the process. Led by Dennis Brager, a California State Bar Certified tax specialist, Brager Tax Law Group has a proven track record of success in all types of audit defense cases.

a) Dennis Brager's Extensive Experience and Contributions

Dennis Brager, the founder of Brager Tax Law Group, is widely recognized for his extensive experience in tax litigation and his deep understanding of complex tax issues. He has been at the forefront of ERC audit defense, sharing his insights as a moderator at the prestigious UCLA Tax Controversy Institute's 2022 panel discussion on this topic. His participation in such events showcases his dedication to staying at the forefront of ERC audit defense strategies and industry developments.

b) Customized ERC Audit Defense Strategies

Brager Tax Law Group crafts customized defense strategies for ERC audits, taking into account the unique circumstances of each client. Their in-depth knowledge of ERC rules, coupled with their experience in tax litigation, negotiation and effective communication, enables them to mount a robust defense on behalf of their clients.

IV. Conclusion

When facing the challenges of an ERC audit, the guidance and expertise of a tax litigation attorney are vital. Brager Tax Law Group, under the leadership of Dennis Brager, stands out for our proven expertise in successfully representing clients in IRS audits. With our comprehensive knowledge of tax laws, skillful documentation preparation, and effective negotiation skills, we provide a strong defense against potential penalties and repayment obligations. By engaging the services of Brager Tax Law Group, businesses can navigate the complexities of ERC audit defense with confidence and protect their financial interests.

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