IRS Office of Promoter Investigations Has Received “Hundreds of Referrals” for ERC Fraud

The Internal Revenue Service (IRS) recently announced that its Office of Promoter Investigations “has received hundreds of referrals” for alleged Employee Retention Credit (ERC) fraud promotion schemes. While the IRS is holding businesses accountable for submitting fraudulent ERC claims, its Office of Promoter Investigations is also targeting tax advisors, accountants and others suspected of encouraging and facilitating fraudulent filings.

As Washington D.C. IRS attorney Kevin E. Thorn, Managing Partner of Thorn Law Group, explains, this presents substantial risks for alleged “promoters.” The Office of Promoter Investigations is pursuing criminal enforcement in many cases—and criminal tax charges carry both fines and prison time.

Protecting Yourself if You’ve Been Contacted By the IRS’ Office of Promoter Investigations

With this in mind, individuals and firms facing ERC-related scrutiny from the IRS’ Office of Promoter Investigations need to be very careful to protect themselves. If you have been contacted by the Office of Promoter Investigations, here are some steps it will be important to take as soon as possible:

• Preserve All Relevant Documents – While it may seem counterintuitive, one of your first priorities should be to preserve all relevant documents. If you attempt to destroy or delete relevant files, the Office of Promoter Investigations will be able to uncover this, and then you can face charges for destroying evidence regardless of whether you are liable for promoting ERC fraud.
• Preserve All Relevant Communications – You should also preserve all relevant communications. This includes preserving copies of all emails, text messages, and direct messages with your clients, business partners and others.
• Review Your Audit Notice, Target Letter or Subpoena Carefully – Unless federal agents showed up at your door, you most likely learned about the Office of Promoter Investigations’ inquiry through an audit notice, target letter or subpoena. Regardless of the type of notice you received, you should review it carefully and make sure you are aware of any impending dates or deadlines.
• Avoid Making Any Assumptions – When facing a federal audit or investigation, it is critical to avoid making any assumptions. Regardless of what you may or may not have done, under no circumstances should you assume that the Office of Promoter Investigations’ inquiry will lead to federal charges—or that you will get off free.
• Talk to a Washington D.C. IRS Attorney – Due to the substantial risks involved in facing an ERC fraud promoter audit or investigation, it is also critical that you talk to a Washington D.C. IRS attorney as soon as possible. Our attorneys are available to speak with you immediately, and we can intervene in the Office of Promoter Investigations’ inquiry as soon as you engage our firm to represent you.

Request a Confidential Consultation with Washington D.C. IRS Attorney Kevin E. Thorn

This list is by no means exhaustive. If you have been contacted by the IRS Office of Promoter Investigations, we encourage you to contact us promptly for more information. To request a confidential consultation with Washington D.C. IRS attorney Kevin E. Thorn, Managing Partner of Thorn Law Group, call 202-349-4033 or contact us confidentially online now.