ERC Compliance Review

Ensure Your ERC Compliance and Avoid IRS Penalties

Did Your Business File Through an ERC Mill?

ERC Compliance Review is a comprehensive analysis of your existing Employee Retention Credit claim, assessing its compliance with IRS rules, identifying any potential liabilities, and recommending corrective actions. You will receive a detailed report that highlights any potential risks and outlines your path to ERC compliance.

Is ERC Compliance Review Right for Your Business?

ERC Compliance Review is for any business owner uncertain about the validity of their Employee Retention Credit claim. ERC Review is a proactive measure that reveals any potential red flags in your ERC claim. Even if you’re confident your business truly qualified for ERC, you need to have specific documentation in case of an IRS ERC audit.

Can you substantiate your business’ ERC compliance?

Businesses may need the following documentation to demonstrate ERC compliance:

  • A detailed calculation of the ERC credit for each employee
  • A COVID-related government order timeline and summary
  • Documentation to substantiate a 10% “nominal disruption”
  • Detailed employee count analysis

Why Review Your ERC Claim Now?

The Rise of ERC Fraud

Through no fault of their own, many businesses have filed for Employee Retention Credits they don’t actually qualify for. Dubious tax credit pop-ups, recently dubbed “ERC Mills,” advise every client to claim ERC without conducting an appropriate analysis of the business’ eligibility.

Increased ERC Audit Risk

If your ERC claims were prepared without adequate analysis of your eligibility for the credit, your business runs the risk of an IRS audit or, in some cases, IRS civil or criminal fraud investigations. The result of any audit or investigation could be the denial of your claim and, possibly, the imposition of penalties for negligence or fraud. Omega can help determine the validity of your claim and, with the use of guidelines published by the IRS, we can identify whether you were the victim of an unscrupulous ERC preparer.

Review Your ERC Compliance

Businesses that file improperly through a questionable tax credit provider usually do not have documentation substantiating their claim, putting them at risk of penalties and interest. As the IRS ramps up enforcement through ERC audits and investigations, business owners should have their ERC claim double-checked by an experienced and trusted firm while there is still time to correct or withdraw any improperly claimed credits.

ERC Compliance Review: What Omega Provides

Tier I Compliance Review

Our expert team of tax credit analysts will conduct a complete examination of your claim, assessing all key areas for ERC compliance and revealing any inaccuracies, including:

  • Calculation methodology
  • Errors in filing documents
  • Eligibility criteria
  • Existence of supporting evidence & documentation
  • Timeline of Government Orders

Your business will receive a detailed report that identifies potential inaccuracies in your ERC claims. We will also recommend corrective actions you can take to ensure your ERC compliance. If we determine that your eligibility for the ERC was not supported by IRS guidelines and tax law, our Tax Controversy Group can provide a Tier II review.

Tier II Compliance Review

Our Tax Controversy Group will conduct an in-depth analysis of your claim and your path to qualification before assisting you in implementing any actions needed to correct your claim. Tier II ERC Compliance Review includes:

  • Detailed report and substantiation package
  • A breakdown of our calculations
  • COVID-related government orders you may qualify under
  • Analysis and supporting documentation used in your eligibility determination

Your decision-makers and/or CPA can utilize our review to make an informed decision on amending, withdrawing, or waiting for the IRS to process your claims.

Tax Controversy Support

If you have already received your ERC refund, but have now determined you did not qualify, our Tax Controversy Group can assist you in dealing with the IRS regarding the repayment of the claim, including the possibility of a payment plan and the avoidance of potential penalties and interest charges. If your claim is challenged by the IRS, our Tax Controversy Group can represent you during the audit process through the Appeals level.

Contact us to learn more about ERC Compliance Review today.