Based on our understanding, the IRS uses several methods to select Employee Retention Credit (ERC) applications for audit, and in some cases, random selection. Suspicious conditions can also cause an IRS auditor or a computer-generated algorithm to raise a red flag on your ERC filing.
It is important to note that the supporting information for an ERC claim, including eligibility substantiation, is not submitted (nor is required to be) with the IRS in tandem with the 941-X filing to claim ERC. Therefore,…
