BMWL Forms New Team to Represent Nonprofits in IRS Employee Retention Credit Audits

Today, BMWL managing partner, Mike Batts, announced the formation of a special team within the firm to represent nonprofit organizations in IRS audits of Employee Retention Credit (ERC) claims.

“It is both clear and understandable that the IRS is gearing up in a major way and will be conducting an extensive number of examinations over the next few years of employers who claimed the ERC,” said Batts.  “Given the extraordinary amount of fraud and impropriety that has arisen in the arena of ERC claims, the IRS must engage in a big way to protect Americans from bad actors who are effectively stealing taxpayer dollars.  It’s a very big deal,” added Batts.

At the beginning of this year, Batts went on record stating that improper ERC claims may represent “the biggest tax fraud scandal of all time.”  He has also predicted that due to the massive fraud, Congress will shorten the time period during which ERC claims can be made and that Congress will extend the time period during which the IRS can audit ERC claims.

In preparation for IRS examinations of ERC claims by nonprofit organizations, Batts appointed appropriately experienced members of the firm to a new IRS ERC Audit Representation Team.  The team will consist of the following professionals within BMWL:

  • Mike Batts
  • Michele Wales
  • Kaylyn Varnum
  • Sophie Chevalier
  • Jessica Hebb

Members of the BMWL IRS ERC Audit Representation Team have extensive knowledge and experience in the rules surrounding the ERC, as well as extensive knowledge about the IRS audit process involving nonprofits.

“Our special IRS ERC Audit Representation Team will be giving careful and unique consideration to every aspect of the IRS examination process…including the special rules the IRS must follow in conducting an inquiry or examination of a church or association of churches,” said Kaylyn Varnum, a partner in BMWL and a senior member of the new IRS audit team.  “Senior members of our team will guide the strategy in every examination.  We will work with our clients to help them navigate the process in a professional manner, and of course, we will help them support and defend their valid ERC claims before the IRS,” added Varnum.

“The ERC is a great source of valuable financial aid to eligible organizations,” said Batts.  “We will have to help the IRS see that valid claims made by eligible organizations are justified.”

Nonprofit organizations that have been notified of an IRS inquiry or examination in connection with an ERC claim can reach the BMWL IRS ERC Audit Representation Team at [email protected].

This publication is for general informational and educational purposes only, and does not constitute legal, accounting, tax, financial, or other professional advice. It is not a substitute for professional advice. For permission to reprint, please contact us.  © 2024 Batts Morrison Wales & Lee, P.A.  All rights reserved.
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