Parag Patel Esq. Speaks at NJCPA Seminar on”Employee Retention Credit Audit Issues: Surviving IRS Scrutiny”

Parag Patel Esq. was a featured speaker at a New Jersey Society of Certified Public Accountants (NJCPA) Seminar entitled “Employee Retention Credit Audit Issues: Surviving IRS Scrutiny”. You may email our office to receive the seminar materials.

Seminar descriptions is below:

“Employee Retention Credit Audit Issues: Surviving IRS Scrutiny” .

The ERC was implemented to help employers retain and pay employees during the COVID pandemic. With credits offered of $5,000 per employee in 2020 and increased to $7,000 per quarter for the first three quarters of 2021, the ERC provided substantial relief to businesses affected by the COVID pandemic. However, with the large amounts of potential credits also came “credit mills” and scammers.

ERC mills sell companies on being able to easily qualify for the ERC without diligently determining whether the companies qualify. Many companies have been swayed by these sales pitches, often to the dismay of their tax advisers. The IRS issued a warning on Oct. 19, 2022, that “warned employers to be wary of third parties advising them to claim the Employee Retention Credit when they may not qualify” and noted that these mills usually charge upfront or contingent fees for their services.

Penalties for improperly claiming the ERC are very high and could include a 20 percent accuracy-related penalty and a 75 percent penalty for civil fraud, as well as a criminal case against the taxpayer brought by the IRS. Tax practitioners working with businesses that have taken advantage of ERCs need to prepare for IRS scrutiny.

Experienced tax attorney Parag Patel has handled hundreds of complex tax matters for clients.

The New Jersey Society of Certified Public Accountants (NJCPA) is the largest professional organization serving the needs of Garden State CPAs and aspiring CPAs. With a membership of more than 14,000, the NJCPA represents the majority of New Jersey CPAs in public practice, business & industry, government and education. We support our members through a variety of education, networking, leadership and volunteer initiatives. The NJCPA offers more than many continuing education programs annually to help members increase their value to their clients, companies or organizations and to help CPAs meet their education requirements. Eleven chapters and numerous committees and interest groups made up of hundreds of CPA volunteers develop programs and address issues to help all members be successful professionals.

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