Introduction

As a founder of a boutique law firm, legal needs evolve quickly—from formation documents and IP protection to investor negotiations and tax compliance. One question we’ve been getting more often at Zecca Ross Law is:

“Can a boutique startup law firm like yours serve as both our outside general counsel and represent us during an IRS Employee Retention Credit (ERC) audit?”

The short answer: Yes, absolutely.

And at Zecca Ross Law, we’re uniquely positioned to do just that.

Dual Role: General Counsel + ERC Audit Representation

As your outside general counsel, we already understand your business model, cap table, contracts, and internal operations. This allows us to handle legal issues with speed and strategy. When an ERC audit or IRS inquiry arises, that familiarity becomes a powerful asset—we're not starting from scratch like a separate tax-only firm would.

Our team is experienced in both corporate law and federal tax procedure, allowing us to step in and manage:

  • IRS audits and correspondence
  • Legal strategy and representation during reviews
  • Penalty mitigation and appeals (if needed)
  • Coordination with your payroll provider and CPA
  • Corrections and voluntary disclosures, if applicable

This integrated approach is not only efficient, but often more cost-effective than hiring multiple firms.

How Are Fees Structured for ERC Audit Defense?

Fee structures for ERC defense vary depending on the complexity of the case, number of tax years involved, and the volume of documentation. At Zecca Ross Law, we prioritize transparency and predictability, and we offer flexible billing models to fit your needs.

🔹 Flat Fees

For straightforward cases (e.g., one tax year, no Schedule C income), we may offer a flat fee package. This allows you to know the cost upfront, with no surprise bills. For more complex ERC audits involving multiple entities, employees, or questionable third-party filings, we’ll provide a custom quote.

🔹 Hourly Rates

In situations where the scope of work is fluid or evolving—such as when dealing with IRS appeals, multiple years under audit, or cross-border issues—we may bill hourly. Our business-focused rates are competitive compared to larger firms, with full transparency at every stage.

🔹 Retainers

In some cases, we may request a retainer, which is an upfront deposit against hourly work. This is common when we anticipate a longer audit timeline or expect extensive communication with the IRS.

What About Contingency Fees?

We do not do contingency fees for IRS audit defense. The IRS prohibits tax practitioners from charging fees based on the outcome or refund percentage in matters before the IRS. This includes ERC audits.

So, if another firm is offering to take a percentage of your ERC refund in exchange for defense—that’s a red flag.

State Rules Matter, Too

Fee structures must comply with state bar regulations, especially in jurisdictions like California, where contingency fees for tax matters are expressly forbidden. At Zecca Ross Law, we follow all ethical guidelines to the letter while still providing flexible, founder-friendly billing models.

Final Takeaway

Yes, your boutique law firm can—and should—represent you in an ERC audit. The same legal team advising you on contracts, investors, and compliance can now protect you when the IRS calls.

At Zecca Ross Law, we combine startup savvy with tax law expertise, delivering legal representation that’s strategic, responsive, and rooted in deep knowledge of your business.

If you’ve received an IRS notice regarding your ERC claim—or want to prepare before one arrives—let’s talk.

Schedule a call with our legal team to review your exposure and build your audit defense strategy.