ERTC Audit Defense: What to Expect and How to Prepare

Why ERTC Claims Are Under Scrutiny

The IRS has significantly intensified its scrutiny of Employee Retention Tax Credit (ERTC/ERC) claims filed during and after the COVID-19 pandemic. With the agency having flagged hundreds of thousands of potentially improper claims, businesses that claimed the ERTC — particularly those that worked with aggressive third-party promoters — need to understand what an audit looks like and how to respond.

The ERTC was one of the most generous tax relief programs in recent memory — providing eligible employers up to $26,000 per qualifying employee. Its complexity, combined with aggressive marketing by third-party promoters who earned large contingency fees, led to a significant volume of inflated or improper claims.

What an ERTC Audit Looks Like

An ERTC examination typically begins with a CP2000 notice, an information document request (IDR), or a formal audit notification. The IRS will request documentation supporting:

• The employer's claim of a qualifying government order that caused a full or partial suspension of operations
• Revenue decline calculations (if claiming the alternative gross receipts test)
• Payroll records and documentation of eligible wages
• Records showing the employee count and classification
• Any documentation from the third-party promoter who prepared the claim

What to Do If You Receive an ERTC Notice

First: do not ignore the notice. Response deadlines are real, and failure to respond can result in automatic disallowance of the claim and assessment of additional penalties.

Second: gather all documentation related to the original claim. If a third-party promoter prepared the filing, obtain all of their work product and analysis.

Third: engage qualified legal counsel experienced in IRS examinations and ERTC defense. This is not a situation for general legal counsel — ERTC audit defense requires attorneys who understand both the technical eligibility requirements and the IRS enforcement posture.

Zecca Ross Law's ERTC Defense Practice

Zecca Ross Law provides ERTC audit defense for businesses facing IRS examination of Employee Retention Tax Credit claims. The firm's attorneys have deep experience in IRS examination procedures, penalty abatement, and audit appeals — and provide transparent, flat-fee billing for ERTC defense work. If you've received an IRS notice related to your ERTC claim, contact Zecca Ross Law for an immediate consultation.