ERTC Audits Are Here: What Every Shop Owner Needs to Know in 2025 [E193]
Description
Thanks to our partners Promotive and Wicked File
After years of waiting, many shop owners are discovering that their long-anticipated Employee Retention Tax Credit (ERTC) checks may never come — and worse, some are facing IRS audits they didn’t see coming. In this week’s episode of Business by the Numbers, Hunt Demerist, CPA at Paar, Melis & Associates, breaks down the chaos behind the ERTC delays, what triggers an audit, and what every business owner should be doing right now to protect themselves.
This Week, Hunt takes listeners inside the IRS’s renewed crackdown on ERTC claims. From delayed payments and disappearing credit firms to official audit questionnaires, Hunt shares real client examples, reveals the riskiest filing groups, and explains why quarter three of 2021 has become the IRS’s favorite target. He also offers actionable advice on what to do if you’re still waiting for your refund—or worse, if you’ve received an audit letter.
In This Conversation:
- (04:10 ) The truth about ERTC payment delays and why checks have slowed since mid-2024
- (08:35 ) Why the IRS is focusing on third quarter 2021 claims
- (13:40 ) How credit firms and PEO companies like BBSI became audit magnets
- (18:55 ) What the official IRS audit questionnaire looks like — and how to prepare
- (23:22 ) Key warning signs your ERTC claim could be flagged
- (27:10 ) Why smaller, direct filers are less likely to face audits
- (31:00 ) What to do (and not do) if you haven’t received your ERTC payment
- (35:45 ) Hunt’s cautious outlook for 2025 and what it means for shop finances
If you’re ready to protect your shop from ERTC chaos and stay informed on what the IRS is really doing behind the scenes, this episode is essential listening.
- IRS Official ERTC Audit Questionnaire: https://info.paarmelis.com/hubfs/Employer%20Response%20to%20IRS%20Document%20Request%20Form.docx
Thanks to our partner Promotive
It’s time to hire a superstar for your business; what a grind you have in front of you. Introducing Promotive, a full-service staffing solution for your shop. Promotive has over 40 years of recruiting and automotive experience. If you need qualified technicians and service advisors and want to offload the heavy lifting, visit https://gopromotive.com/
Thanks to our Partner WickedFile
Turn chaos into clarity with WickedFile, the AI for auto repair shops. Transform invoices into insights, protect cash flow, and stop losing parts, cores, or credits to maximize your bottom line. visit https://info.wickedfile.com/
Paar Melis and Associates – Accountants Specializing in Automotive Repair
Visit us Online: www.paarmelis.com
Email Hunt: podcast@paarmelis.com
Text Paar Melis @ 301-307-5413
Download a Copy of My Books Here:
The Automotive Repair Podcast Network: https://automotiverepairpodcastnetwork.com/
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