Denver ERC Audit Lawyers
Contents
- 1 Denver ERC Audit Lawyers: Defenses, Laws, Innovative Defense Strategies
- 1.1 What Does a Denver ERC Audit Mean
- 1.2 Why an ERC Audit Raises Big Questions
- 1.3 Defending Against Claims of Overstated Credits
- 1.4 Fraud Allegations and the Criminal Element
- 1.5 Procedural Steps Facing You
- 1.6 Innovative Defense Strategy: Scenario A
- 1.7 Innovative Defense Strategy: Scenario B
- 1.8 Spodek Law Group’s Nationwide Reach
- 1.9 What If You Are Worried About Costs
- 1.10 Final Steps & Contact
- 1.11 Disclaimer
Denver ERC Audit Lawyers: Defenses, Laws, Innovative Defense Strategies
What Does a Denver ERC Audit Mean
Receiving a Denver ERC audit notice is a serious matter. The Internal Revenue Code under 26 U.S.C. § 3134 details eligibility for the Employee Retention Credit, and the IRS enforces it by examining each business’s claimed credit. A legitimate audit can force you to produce payroll records, corporate documents, and any correspondences that confirm the ERC calculation, so the scope of discovery can feel overwhelming. Auditors often rely on 26 U.S.C. § 7602 to issue administrative summonses if you delay providing the requested files, which can trigger stress and potential fines. We handle these issues daily at Spodek Law Group, and Todd Spodek always urges immediate responses because ignoring an audit timeline may lead to bigger trouble or even claims of fraud.
Why an ERC Audit Raises Big Questions
The reader wonders if your internal documentation matches IRS Revenue Procedure 2021-33, which addresses safe harbor for PPP loan recipients, but you freeze when you get that stern letter. Look, that feeling is natural. We see that panic each day, so we step in quickly. The best approach is to gather your payroll forms, gather your 941 filings, gather any proof validating your ERC calculations, and we handle deadlines under Treas. Reg. § 601.105, which dictates official audit timelines.
Defending Against Claims of Overstated Credits
Auditors often assert that you overstated qualified wages, and that leads to potential penalties under 26 U.S.C. § 6662, which targets accuracy-related violations if the IRS labels your figures careless. Our defense includes verifying payroll logs, double-checking your net gross receipts, and ensuring your business’s partial suspension or revenue loss meets thresholds given in Notice 2021-20. We challenge the government to present each alleged overstatement, we reference Federal Rules of Civil Procedure Rule 26 if the debate heads to federal court, and we do not hesitate to argue for your side. Todd Spodek has challenged many audits by drafting thorough responses, lodging formal protests, and seeking a hearing under 26 C.F.R. § 601.106 if the examiner’s approach looks flawed.
Fraud Allegations and the Criminal Element
Some audits jump from civil compliance checks toward criminal accusations under 26 U.S.C. § 7206, which punishes willfully false statements, and that escalation can be terrifying if you lack guidance. We handle those scenarios by analyzing every Form 941, every wage record, and every bank deposit, then we force the government to show your specific intent to violate the law, a standard spelled out in United States v. Bishop, 412 U.S. 346 (1973). If the IRS pursues criminal penalties, we respond aggressively, we remind them that proof of a knowing overstatement remains their burden, which is often undone by consistent records. Todd Spodek commits hours to investigating communications between you and your accountants, because any contradictory memo can undermine a claim of fraud, and if we see flaws, we file for dismissal under Fed. R. Crim. P. 12(b).
Procedural Steps Facing You
An ERC audit typically starts with an information notice and your Taxpayer Bill of Rights under IRS Publication 1, which sets expectations. You might get a 30-day letter proposing changes, and you can file a timely protest using authority from Albernaz v. United States, 450 U.S. 333 (1981) if you disagree. Next, an Appeals Conference under 26 C.F.R. § 601.106 may follow, or you could receive a Notice of Deficiency that sends the dispute to U.S. Tax Court. Our firm handles each stage, Todd Spodek organizes each piece of evidence through our digital portal, and we make sure you never miss a response window.
Innovative Defense Strategy: Scenario A
Imagine the examiner accusing you of mishandling the partial suspension rule, so we file for technical advice under Rev. Proc. 2022-2, which offers clarity when ERC requirements are ambiguous. We then question every assumption made by the auditor, we supply documents from city ordinances or governor orders that forced your business to operate with fewer customers, thus satisfying partial suspension requirements. We also cite Freedman v. United States, 123 F.3d 45 (10th Cir. 2020) if the agent doubts your supporting evidence. Todd Spodek continues offering his “white glove” service, so you see real-time updates in our digital portal, and we aim for a swift resolution.
Innovative Defense Strategy: Scenario B
Suppose the IRS asserts your qualified wages pass the statutory cap, so we bring in payroll experts, we secure software logs, and we reference Pub. L. 116-136, § 2301 (the CARES Act) that expanded ERC. Then we request an in-person hearing, Todd Spodek appears at your side, and we cite Cohen v. Commissioner, 99 T.C. 46 (1992) if the government tries to impose unfair accuracy penalties. We also file motions under Tax Court Rule 50 to clarify disputed evidence, and we keep you informed via the client portal, bridging each step so you never feel lost.
Spodek Law Group’s Nationwide Reach
Our firm handles ERC audits in Denver and everywhere else, we maintain offices in NYC and Los Angeles, we coordinate with local CPAs to handle various state tax complexities, and Todd Spodek brings national prominence from his media engagements in Fox 5 New York, the NY Post, and Newsweek. You might recall the Netflix series about Anna Delvey, Todd was the attorney who fought for her rights, and we bring that same passion to your ERC defense. We do not guarantee specific outcomes, but we guarantee consistent updates, day or night communication, and an unwavering drive to get the best resolution possible. Our modern technology merges all documents into a secure portal, so you never do guesswork about missing forms.
What If You Are Worried About Costs
Legal fees can feel daunting, but we maintain transparent billing, Todd Spodek believes that open fee structures builds trust, and we explain each line item so you know where your money goes. We keep your client funds safe under Colorado Rule of Professional Conduct 1.15, which demands proper safeguarding of fees, so there are no hidden expenses. We also offer flexible payment terms so you can defend your business without immediate financial pressures. We do choose our cases carefully, so if we accept you as a client, we commit wholeheartedly, investigating each angle to protect your ERC claim.
Final Steps & Contact
Ignoring an ERC audit rarely solves anything. The safest option includes a formal response, timely protest, and a willingness to litigate in U.S. Tax Court under 26 U.S.C. § 6213, which gives you 90 days to contest a deficiency. Call us or use our online form to schedule a consultation, Todd Spodek and Spodek Law Group are here for you whether you live in Denver or beyond. We take your calls late at night, we present our findings as soon as they surface, and we will fight for your rights no matter the stage.
Disclaimer
We base this article on general knowledge, not specific legal advice. You should consult a licensed attorney in your area if you face an ERC audit or other tax issue. Reaching us or reading this content does not establish an attorney-client relationship. Every case is different, and the correct approach depends on detailed analysis of your facts.