NEW YORK, Oct. 17, 2023 - Falcon Rappaport & Berkman (FRB) has launched a task force to help businesses defend Employee Retention Credit (ERC) audits and investigations. The IRS has recently expressed concerns about questionable ERC claims, often orchestrated by unethical "ERC Mills", leaving business owners vulnerable to severe penalties.
ERC Mills promote quick and substantial financial benefits through the ERC program — even for ineligible businesses — employing tactics such as guaranteed eligibility claims, minimal vetting, enticing marketing phrases, exorbitant fees, and upfront payments. As a result, the IRS has halted processing of new ERC claims while scrutinizing existing claims.
FRB's ERC Audit Defense Task Force helps businesses navigate the frightening process of a government inquiry, including:
Negotiating with the IRS upon audit of an ERC claim, including defending claims and arguing against the application of penalties
Proactively advising on ERC claims not yet audited, including double-checking eligibility assessments from ERC Mills
Analyzing agreements with ERC Mills and consideration of remedies
Evaluating alternative avenues for tax savings
Advising other service professionals, such as accountants, regarding ethical responsibilities, legal liabilities, and defense preparations related to ERC claims
"We've been disconcerted by the rise of ERC Mills since businesses have been bombarded with solicitations, and the problem has metastasized. Our own law firm still gets regular inquiries from these bad actors, even after the IRS rightfully took drastic measures to try and curb the flow of rotten claims," said FRB's Vice Managing Partner, Matthew Rappaport. "We are committed to fighting for businesses in hot water for seeking what they thought were legitimate benefits from an established government program," he continued.
If you or your business require ERC assistance, contact the Task Force at erc@frblaw.com. Learn more about FRB's ERC-related services here.
Falcon Rappaport & Berkman LLP is a full-service law firm proudly advising clients seeking solutions to their most complex matters. FRB differentiates itself by approaching matters with a level of depth and variety of skills unmatched by typical advisors. FRB holds a firm-wide commitment to excellent service and offers access to thought leaders in numerous areas of professional practice who come together as a team to solve problems and achieve client objectives.
For more information, please email FRB's Marketing Director, Abby Winckler, at awinckler@frblaw.com.
FRB website: https://frblaw.com/
SOURCE Falcon Rappaport & Berkman LLP
