I have several active employment tax audits, with one of them directly involving ERC. During the course of these months-long examinations, I have had the opportunity to visit with the IRS agents about the IRS’ focus on employee retention credits. Through these informal conversations I’ve learned that:
- The IRS hired a new crop of employment tax examiners and initiated vigorous training for all examiners on ERC last summer.
- At least in Texas and the surrounding areas, the IRS unleashed the first “wave” of ERC audits in late Q4 of 2022.
- Employment tax examination teams are being advised that nearly 100% of their workload over the next three years will consist of ERC audits.
- To manage this ERC-exclusive workload, IRS employment tax examiners are being instructed to turn back in, or quickly close, cases with issues unrelated to ERC.
If you have any questions about this blog post or any other tax-related topic, please do not hesitate to contact me at firstname.lastname@example.org or (214) 749-2464.