IRS Audits of the Employee Retention Credit 2024
EVENT DATE:
PRESENTER(s): Nick Preusch CPA
This program has been approved HRCI Credit 2 and NASBA & IRS CPE Credit 2(Taxes)
The rising popularity of the Employee Retention Credit (ERC) audits is not something to overlook. This webinar will provide an update on the market, what we know about ERC audits and the audit process. The webinar will address details of the ERC with a focus on strategies to resolve your IRS Audit without adjustment successfully.
This webinar will provide insights into preparing for the IRS' ongoing examinations of Employee Retention Credits (ERCs) claimed by businesses. Highly advertised and often promoted to ineligible taxpayers, these credits were spotlighted on the IRS 2023 Dirty Dozen list of tax scams. Unfortunately, the bad players have heightened the risk of an audit for even legitimate ERC claims. Our panel of former IRS attorneys will prepare business owners and tax advisers for these audits.
The ERC was implemented to help employers retain and pay employees during the COVID pandemic. However, with the large amounts of potential credits also came credit mills and scammers. ERC mills sold companies on being able to easily qualify for the ERC without diligently determining whether the companies qualify.
On Oct. 19, 2023, the IRS implemented a policy that allows employers to withdraw erroneous ERC claims. Penalties for improperly claiming the ERC are steep and could include a 20 percent accuracy-related penalty and a 75 percent penalty for civil fraud, as well as a criminal case against the taxpayer brought by the IRS. As if this wasn't enough, these payroll-type audits can open the door to income tax audits of the business itself. Tax practitioners working with businesses that have taken advantage of ERCs need to prepare for IRS scrutiny.
- Determine results of Employee Retention Credit audits thus far and what to expect in the future
- Recognize the scope of the Employee Retention Credit
- Identify the information that will be reported to the IRS
- Employee Retention Credit details
- Employee Retention Credit Audit process and preparation
- Update on the market
- IRS audits and enforcement actions related to ERC
- Withdrawing prior ERC claims
- Practical tips for preparing for and handling an ERC auditPractical advice for handling an IRS audit related to the ERC
- Useful tips to prepare clients for ERC audits
- Separating legitimate and illegitimate ERC claims
Credits and Other information:
- Recommended CPE credit – 2.0
- Recommended field of study – Taxes
- Session Prerequisites and preparation: None
- Session learning level: Basic
- Location: Virtual/Online
- Delivery method: Group Internet Based
- NASBA Sponsor: 146439
- IRS Course ID: PJGWS-T-00072-23-O
- Attendance Requirement: Yes
- Session Duration: 2 Hours
- Case Studies and Live Q&A session with speaker
- PowerPoint presentation for reference
Who Will Benefit:
- CPA
- Enrolled Agents (EAs)
- Tax Professionals
- Attorneys
- Other Tax Preparers
- Finance professionals
- Financial planners
