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If IRS misinterpreted your Returns

You must respond timely and convincingly respond

IRS can inexplicitly and summarily dismiss valid claims.

IRS doesn't consistently consider all the different legal grounds that can apply to support and overcome refund claim denial.

IRS doesn't always consider or know all material facts that support your refund claim, or may misinterpret them. Your facts must be compellingly presented to overcome the denial.

ERC return negligence can be based on apparent:

Refund request for ineligible quarters.

Including employees who were not eligible for ERC credit consideration regardless of how much they were paid.

Including amounts paid to actual employees that exceeded the strict ERC pay ceiling limits. Not all payroll paid is eligible.

Total payroll may appear over-stated or inflated when compared to previous non-COVID periods.

Total number of employees claimed to be eligible may appear over-stated when compared to previous non-COVID periods

Civil fraud or Criminal fraud. IRS is on the hunt.

Civil fraud generally includes intentional disregard for tax code, rules and regulations. It can lead to 75% penalties being added to ERC refunds that must be returned. Interest accrues and grows until the total owed is paid to IRS.

Criminal fraud is based on the intent to violate the law. But, most importantly your freedom is at stake. Criminal tax fraud can be punished with time in prison, plus restitution.

Both situations require your pre-emptive actions. Taxpayers, Tax return preparers and people who assisted in the preparation of the ERC refund claims can be targeted, individually and in combination.

Tax Preparers- Beware, IRS Risks are Real. Don't let them snowball on your financial well being

ERC RISKS are VERY REAL

Even if you waited for months or years only to have the IRS reject, reduce your refund or threaten you. ACT NOW!

Delays can compromise your claims and rights. You must ratchet your response to match or pre-empt the IRS's aggressiveness towards you.

Penalties and Interest could more than double what was claimed

Paying back the IRS Refund?

ERC Payback Calculations are for illustration purposes only and are subject to change on a case to case basis

erctaxcrisis.com is not responsible in partial or in full in case of a calculation error arising out of any change in IRS policy, change in interest rates. These are circumstantial in nature and are subject to change.

Basic Assumptions for Calculations are as follows:

Interest Accruals on ERC Amount at 7% per annum.
Interest Accrual on Penalty at 7% per annum based on the assessment and type of charges filed by the IRS.
Interest Period is for a period starting from 31st March 2021 to 31st may 2025.
Calculations are based on the assessment and penal rates imposed by IRS against negligence, civil fraud, disregard of rules and procedures and complete rejection of ERC amount (instances of partial rejections have not been considered for simplicity).

Please feel free to write to us in case you wish to highlight any issues, we would love to hear from you.

If IRS misinterpreted your Returns

You must respond timely and convincingly respond

Some RED FLAGS that the IRS looks for:

ERC return negligence can be based on apparent:

Civil fraud or Criminal fraud. IRS is on the hunt.

ERC RISKS are VERY REAL

Penalties and Interest could more than double what was claimed

Repayment Amount

Negligence Penalty (5%)

Civil fraud Penalty (75%)

Interest Accrued (7%)

$ 50,000

$2,500

$9,375

$3,295

$ 100,000

$5,000

$18,750

$6,590

$ 200,000

$10,000

$37,500

$13,180

$14,622

$327,730

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