Be prepared for IRS audits of COVID-19 ERC claims

Description

Abstract: The availability of Employee Retention Credits (ERCs) during the height of the COVID-19 pandemic — particularly the ability to claim advance payments of the credits — played a critical role in keeping many nonprofits afloat. Now, however, the IRS has begun to subject some employers that claimed ERCs to audits. Given the extended five-year statute of limitations for such audits, nonprofits that claimed the credits need to prepare. This article highlights what nonprofits should do to prepare for a possible ERC audit.