Have you received a letter from the IRS questioning your Employee Retention Credit (ERC) claim? You’re not alone. Thousands of businesses are now facing ERC audits as the IRS increases scrutiny. At Olympia Tax Service, we know this process can feel stressful and uncertain. That’s why we step in as a fresh set of eyes. Unlike the company that originally filed your ERC, we can provide an independent review and represent you without any conflicts of interest. Our goal is simple: to guide you through the audit process, protect your business, and give you peace of mind.
If you haven’t received your ERC refund yet and are unsure whether your claim is valid, now is the perfect time to take a second look before the IRS does. We can help you review your filing and, if needed, apply proactive strategies to adjust your claim and reduce potential risk.
The ERC was one of the most valuable tax relief programs created during the COVID-19 pandemic. Many businesses claimed the credit in good faith, relying on advisors (some of whom were not acting in good faith) or trying to interpret complicated IRS guidance on their own, but now the IRS is increasing its scrutiny. That’s where ERC audits come in, and why businesses are turning to professionals for ERC audit help.
An ERC audit is the IRS reviewing your claim to ensure your business was eligible and that the amount you claimed was calculated correctly. If your ERC claim is selected, you’ll need to provide documentation that supports your eligibility and calculations. For many business owners, this can feel overwhelming, especially if their ERC claim was prepared quickly or by a third-party service that is no longer available to help.
Why the IRS Is Auditing ERC Claims
The IRS has expressed concerns about aggressive or improper ERC filings. Some businesses were encouraged to apply for the credit even if they did not fully qualify. As a result:
- The IRS has increased ERC audit activity.
- Large or unusual claims are more likely to be flagged.
- Businesses that cannot prove eligibility may face repayment, penalties, and interest.
Being audited doesn’t automatically mean your claim was wrong, but it does mean you need to be prepared with the right documentation.
What Happens in an ERC Audit
During an IRS ERC audit, you may be asked to provide:
- Payroll records showing qualified wages.
- Documentation of how your business was impacted (government orders, revenue reductions, or operational restrictions).
- Worksheets or calculations used to determine the credit amount.
- Records supporting health plan expenses included in your claim.
The IRS may also ask industry-specific questions and request proof of the professional guidance you relied upon.
Olympia Tax Service: Your ERC Audit Defense Partner
Facing an ERC audit alone can be risky. At Oly Tax, we specialize in ERC audit defense services and help businesses like yours:
- Review ERC claims proactively to identify and correct potential red flags.
- Organize and present audit documentation clearly and professionally.
- Communicate with the IRS on your behalf to reduce stress and risk.
- Protect your business from penalties by ensuring compliance and accuracy.
Even if your ERC claim was prepared by another provider, we can step in to provide the ERC review services you need to face an audit with confidence.