Defending Against ERC Fraud Allegations from the IRS Office of Promoter Investigations

The IRS Office of Promoter Investigations is targeting tax preparers, accountants and others suspected of encouraging and facilitating Employee Retention Credit (ERC) fraud. Facing scrutiny from the Office of Promoter Investigations presents substantial risks, so an informed and strategic defense is critical. Learn more from Virginia IRS lawyer Kevin E. Thorn, Managing Partner of Thorn Law Group.

Promoting ERC Fraud: A Top Enforcement Priority for the IRS

Due to billions of dollars (and potentially trillions of dollars) in fraudulent ERC claims,  uncovering and prosecuting ERC fraud are top enforcement priorities for the IRS and other federal authorities. While these authorities are targeting businesses and business owners that improperly claimed the ERC, they are also targeting promoters. Specifically, the IRS Office of Promoter Investigations is targeting individuals and firms suspected of:

• Promoting fraudulent ERC filing schemes
• Offering ERC claim assistance without regard to eligibility
• Assisting with the preparation of fraudulent ERC claims
• Assisting with the filing of fraudulent ERC claims
• Establishing new business entities to fraudulently claim the ERC

These acts (among others) can expose promoters to civil or criminal penalties under federal law. Civil penalties can include substantial fines, while criminal penalties can include both fines and prison time.

Given the IRS Office of Promoter Investigations’ focus on ERC fraud and the substantial penalties that are on the table, individuals and firms targeted by the Office need to defend themselves by all means available. For alleged promoters in the Commonwealth, this starts with hiring an experienced Virginia IRS lawyer to deal with the Office on their behalf. While ERC-focused audits and investigations can target a variety of allegations, there are also a variety of defenses available, and an experienced lawyer will be able to build and execute a targeted defense strategy on your behalf.

Responding to an IRS Office of Promoter Investigations ERC-Related Inquiry

For those facing scrutiny from the IRS Office of Promotor Investigations in ERC-related inquiries, a prompt and effective response is essential for mitigating the legal risks involved. Among other things, an effective response will include:

• Carefully reviewing communications from the IRS Office of Promoter Investigations to identify any critical dates or deadlines;
• Preserving all relevant documents and communications (to avoid allegations of destroying evidence—which themselves can lead to federal criminal charges); and,
• Engaging an experienced Virginia IRS lawyer who can immediately get to work evaluating potential defenses and communicating with federal agents on your behalf.

In all cases, time is of the essence. While individuals and firms targeted in ERC fraud promoter investigations may have various options for avoiding federal charges and/or penalties, leveraging these options requires a proactive approach focused on the specific facts and circumstances at hand.

Schedule a Consultation with Virginia IRS Lawyer Kevin E. Thorn

If you need to know more about defending against an ERC-related inquiry from the IRS Office of Promoter Investigations, we encourage you to contact us promptly. To schedule a consultation with Virginia IRS lawyer Kevin E. Thorn, Managing Partner of Thorn Law Group, as soon as possible, call 703-752-3752 or contact us confidentially online now.