ERC Attorney Fees

ERC Attorney Fees: Audit Defense and Litigation Costs

Last updated July 2026

Key Takeaway

ERC litigation is for taxpayers who have a valid claim that the IRS has improperly denied or delayed beyond the legal refund timeline. Filing suit in the Court of Federal Claims or U.S. District Court to compel refund payment typically costs $25,000–$100,000+ depending on the refund amount and whether the IRS contests liability. Large refunds (over $500,000) are generally viable for litigation; smaller refunds may not be cost-effective.

Voluntary disclosure and amended return work — for businesses that claimed ERC but now have questions about eligibility — typically costs $3,000–$8,000 for analysis and amended return preparation, depending on the number of quarters and complexity of the original claim.

If you have already been audited and received a proposed disallowance, there is still time to contest it through IRS Appeals or Tax Court. We can advise on whether that makes sense for your situation.

Fee Reference

ERC Attorney Fee Ranges

Matter Type	Scope	Typical Fee Range
ERC eligibility analysis	Pre-claim review of qualification	$2,000–$5,000
ERC disallowance response (single quarter)	Letter 105C / 106C response	$3,500–$8,000
ERC disallowance response (multi-quarter)	Complex eligibility argument	$6,000–$15,000
ERC audit defense — correspondence	Document-based IRS examination	$5,000–$12,000
ERC audit defense — full field exam	Multi-quarter in-person examination	$12,000–$30,000
ERC Appeals	Post-audit administrative appeal	$8,000–$20,000
ERC litigation — small refund	Under $250K, Court of Federal Claims	$20,000–$50,000
ERC litigation — large refund	Over $500K, contested by IRS	$40,000–$100,000+
ERC amended return preparation	Voluntary compliance / correction	$3,000–$8,000

Ranges reflect Brotman Law’s typical fee structure. Your actual fee will be confirmed in writing before we begin.

What Determines ERC Defense Costs?

Number of quarters at issue
Each quarter is a separate eligibility determination. A two-quarter disallowance is less complex than a five-quarter audit covering both 2020 and 2021.
Eligibility basis
ERC claims based on full or partial government-ordered suspension are different from those based on gross receipts decline. Suspension-based claims often require more detailed legal argument about the connection between a government order and your business operations.
Whether penalty abatement is at issue
The IRS is assessing 20% accuracy-related penalties on many disallowed ERC claims. Contesting these penalties adds to the engagement scope and cost.
Whether litigation is viable
Litigation cost-benefit depends entirely on the refund amount at stake. Attorney fees for ERC litigation are substantial — they make economic sense for large refunds, but not for small claims.
Stage at which you engage counsel
Responding to a disallowance letter is less expensive than defending a full audit, which is less expensive than litigating after an adverse Appeals determination.

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How Brotman Law Structures ERC Fees

We use flat fees for ERC audit defense and disallowance responses. Litigation is handled differently.

Flat Fee

Flat fees for disallowance responses, audit defense through Appeals
Known cost before we begin — no open-ended hourly billing for the administrative phases
If your matter resolves at audit or Appeals (most do), you never pay the litigation premium
ERC eligibility analysis is a separate flat-fee engagement before we recommend a path

Hourly / Other

ERC litigation is billed hourly after an initial flat-fee assessment phase
Court of Federal Claims and District Court ERC cases may also be handled on a contingency basis for large refunds — contact us to discuss

Frequently Asked Questions

ERC Attorney Fees

How much does ERC audit defense cost?

ERC audit defense fees typically range from $5,000–$30,000 depending on the scope of the examination. Single-quarter correspondence audits fall at the lower end; multi-quarter full examinations with complex eligibility arguments cost more. Brotman Law handles most ERC audits on a flat-fee basis.

What is the cost of responding to an IRS ERC disallowance letter?

A response to an IRS ERC disallowance notice (typically a Letter 105C, 106C, or Letter 3175) costs $3,500–$12,000 depending on complexity. Simple responses documenting government orders or revenue decline evidence fall at the lower end. Cases requiring legal arguments about eligibility interpretation or penalty abatement are more involved.

What does ERC litigation cost?

ERC litigation — filing suit in U.S. District Court or the Court of Federal Claims to recover a delayed or wrongfully denied ERC refund — typically costs $25,000–$100,000+ in attorney fees depending on the amount at stake and whether the government contests liability. Cases involving large refunds that the IRS has denied without legal basis are often viable for litigation.

Can I use the IRS Voluntary Disclosure Program for ERC?

The IRS ERC Voluntary Disclosure Program (VDP) closed in March 2024. If you claimed an ERC you now believe was improper, options include the standard claims process (potentially amended returns) and working with IRS exam or Appeals if an audit is already open. An ERC attorney can advise on the best approach for your specific situation.

What is the difference between an ERC disallowance and an ERC audit?

An ERC disallowance is a formal IRS determination that your claim does not qualify, often issued through a Letter 105C or 106C without a full examination. An ERC audit involves an examiner reviewing your records and eligibility documentation before making a determination. Both can be contested — but the strategy and timeline differ.

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