Introduction

The Employee Retention Credit (ERC) has helped countless businesses stay afloat during and after the pandemic—but not without complications. Many companies used third-party payroll providers to file their ERC claims, only to now face growing concerns about IRS scrutiny. If you're one of them, you're not alone—and you’re right to be cautious.

At Zecca Ross Law, we work with companies who’ve relied on external payroll companies or ERC mills, only to realize that compliance and documentation might not have been handled properly. The good news? You still have options—and engaging a qualified ERC audit lawyer is one of the smartest moves you can make.

1. In-Depth Compliance Review Before the IRS Does It

Just because your payroll provider filed the ERC doesn’t mean everything is buttoned up. In fact, the IRS has flagged many third-party providers for aggressively claiming credits without proper documentation.

At Zecca Ross Law, we start by conducting a comprehensive review of your ERC filings:

  • We assess whether your business met the eligibility requirements.
  • We examine wage calculations and how your credits were determined.
  • We cross-check documentation for compliance with IRS standards.

This internal review helps us identify and resolve potential red flags before they escalate into costly audit findings.

2. Representation & Communication With the IRS

If you’re facing an IRS audit—or expect to—you shouldn’t go it alone. Our team will step in as your legal representative, handling all correspondence, document submissions, and negotiations.

We understand how the IRS operates. We know what they’re looking for and how to frame your documentation and explanations to reduce risk and increase credibility.

We don’t just prepare your case—we defend it.

3. Penalty Mitigation and Legal Defense

In the event that the IRS finds fault with your ERC claim, the stakes can be high. Potential outcomes include:

  • Disallowed credits
  • Fines and penalties
  • Accrued interest
  • Even referral for fraud investigation in extreme cases

Our attorneys work to show reasonable cause and good faith compliance, which can help reduce or eliminate penalties. If the case escalates, we are prepared to represent you in appeals or Tax Court—ensuring your rights are protected every step of the way.

4. Coordination With Your Accountant

We don't replace your CPA—we work in partnership with them.

Many founders find themselves stuck between legal and financial advice. We bridge that gap. Our legal team coordinates with your accountant to ensure:

  • A unified audit defense strategy
  • Consistent and accurate responses
  • Proper legal framing of accounting data

This collaboration strengthens your defense and helps avoid contradictions or missteps during the audit process.

5. Guidance on Corrective Actions, if Needed

If our review uncovers issues—such as ineligible wages or unsupported qualifications—we’ll help you correct them proactively. That may involve:

  • Amending ERC claims
  • Withdrawing improperly claimed credits
  • Voluntary disclosure to the IRS

Proactive, transparent action can demonstrate your commitment to compliance and favorably impact the audit outcome.

The Bottom Line

If you relied on a third-party payroll provider to file your ERC claims and now feel unsure about the accuracy or completeness of that process, you are not alone—and it’s not too late to get in front of the issue.

At Zecca Ross Law, we combine tax law expertise with business experience. We understand your business and your risk—and we’re here to protect your team, your reputation, and your future.

📩 Concerned about your ERC filing? Contact us today for a confidential audit risk assessment.