Responding to an ERC Subpoena

If You’ve Received an ERC Subpoena in Boston, You Need to Speak with a Boston Tax Attorney as Soon as Possible

The federal government is aggressively targeting businesses and business owners for Employee Retention Credit (ERC) fraud, and it is relying heavily on its subpoena power to do so. Federal subpoenas can require recipients to disclose extraordinary amounts of information, and non-compliance with a federal subpoena can itself lead to federal criminal charges.

As a result, ERC subpoena recipients need to take their subpoenas very seriously. This starts with engaging experienced federal defense counsel. If you have received an ERC subpoena in Boston, we can help, and we encourage you to contact our Boston tax attorney promptly to discuss your next steps in confidence.

5 Important Facts for ERC Subpoena Recipients

If you are under investigation for ERC fraud (or if you are at risk of facing an ERC fraud investigation), how you respond to the government’s subpoena could make or break your defense. With this in mind, our IRS criminal tax lawyer shares five important facts for ERC subpoena recipients in Boston.

1. You Need to Respond to the ERC Subpoena

The first thing to know is that you cannot ignore the subpoena. Ignoring it will not make the government’s investigation go away, and it could eventually lead to a finding of contempt. Responding to the subpoena strategically will give you the best chance of avoiding unnecessary consequences.

2. You Need to Be Very Careful When Preparing Your Response

When responding to an ERC subpoena, you need to be very careful. While it is important to comply with the subpoena fully, it is equally important to avoid inadvertently disclosing information that doesn’t need to be disclosed. If you need help, do not hesitate to speak to our knowledgeable IRS criminal ERC lawyer.

3. The Grounds to Challenge ERC Subpoenas are Limited

While it is possible to challenge an ERC subpoena in some circumstances, the grounds for challenging these subpoenas are limited. Furthermore, even if a challenge is successful, it is likely to result only in limiting the scope of the subpoena, not quashing the subpoena entirely.

4. Receiving an ERC Subpoena Doesn’t Necessarily Mean You Are a Target

If you have received an ERC subpoena, this doesn’t necessarily mean that you are the target of a criminal fraud investigation. While this is a very real possibility, it is important not to make any assumptions about your (or your company’s) posture in a federal ERC fraud investigation.

5. ERC Fraud Investigations Present Substantial Risks

If you are a target (or if you are at risk of becoming a target), the government’s investigation presents many substantial risks. These investigations are leading to charges for tax fraud, mail and wire fraud, conspiracy, and a variety of other crimes—all of which carry substantial fines and years or decades of federal imprisonment.

Discuss Your ERC Subpoena with a Boston Tax Attorney at Thorn Law Group

Have you received an ERC subpoena in Boston? If so, we can help, but it is important that you contact us promptly. To get started with a confidential consultation with Boston tax attorney Kevin E. Thorn, Managing Partner at Thorn Law Group as soon as possible, call 617-692-2989 today.