The ERC is a complex claim with precise requirements that requires legal analysis to help businesses recover from the COVID-19 pandemic. To date, the IRS has received over 4 million of these claims over the course of the program. However, amid a surge of questionable claims the IRS ordered an immediate stop to new Employee Retention Credit (ERC) processing to protect taxpayers from scams.
Essentially, aggressive marketing to ineligible applicants created unacceptable risks to businesses and the tax system, possibly costing the IRS north of $500 billion in fraudulent claims. Tax attorney Sam Brotman has diligently advised business owners on their options and has helped claim over $100 million in ERC tax credits for his clients. He will explain in common sense terms what you need to know about the ERC tax credit to advise your business clients. Sam will mainly cover: recent ERC developments, the magnitude of the ERC for the IRS & businesses, ERC Mills, the two tests: Financial Impact & Operational Impact, IRS enforcement. Additional topics of discussion: how conservative CPAs processed ERC claims, how different business were affected in different ways, urban vs. rural, differences in state orders, the 9/14/2023 IRS Moratorium, the IRS Voluntary Disclosure Program (ERC-VDP), being proactive, seeking tax advice in an opinion letter and helping your client to understand all their options.
Samuel D. Brotman is the founder of Brotman Law. His practice primarily centers on all aspects of tax litigation and criminal & civil tax controversies. Although a strong proponent of early stage tax resolution, Sam’s practice is uniquely tailored to assist clients in all phases of their tax controversy from administrative resolution of the lawsuit.