The ERC Anxiety No One Talks About

‍Why Harbor Shield matters more than ever for businesses, banks and Credit Unions

Across the country, there is a growing and often unspoken anxiety among business owners. It surfaces quietly at the end of a long day, in the moments when leaders pause and reflect on everything they have carried over the past several years. It takes shape in one lingering question that has become increasingly difficult for many to ignore.

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What happens if the IRS audits my ERC and asks for repayment?

This concern resonates deeply with me because my involvement in the ERC space spans multiple companies, countless industries and years of hands-on work with business owners who fought to keep their organizations alive during an unprecedented period. My teams and I collectively helped nearly fifty thousand companies navigate the ERC process when stability was fragile and relief was vital. We supported restaurants, healthcare practices, manufacturers, franchise groups, transportation companies and family-owned operations that were struggling to regain momentum. We also partnered closely with hundreds of banks and credit unions nationwide, helping many institutions secure the ERC and equip them to better serve the commercial clients who relied on them during that turbulent period, which is exactly why we built Harbor Shield’s ERC audit defense.

For many businesses, the ERC was not simply a credit. It became the path back to breathing room. Owners used the funds to rebuild cash reserves, pay overdue invoices, repair or replace equipment, rehire staff, or simply regain the footing needed to operate with confidence. A significant portion of those owners were under such strain that they sought advances against their ERC while waiting for the IRS to process their claim. These advances were not taken out of convenience but out of necessity. Payroll had to be met, inventory needed replenishing and essential operations could not be paused. Although these advances helped the business survive, they also created a layer of risk that only becomes fully visible in hindsight.

When a business spends future ERC proceeds through an advance, it creates a dependence on funds that have not yet arrived. If the IRS later delays, challenges, or denies the claim, the business faces an immediate financial imbalance. In an audit scenario, that imbalance grows significantly. The owner could be required to repay the advance, resolve the IRS inquiry and absorb penalties or interest at the same time. That level of disruption can place tremendous pressure on a business that has already depleted its reserves over years of pandemic-related challenges.

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The downstream risk for banks and Credit Unions

This reality also affects financial institutions. Banks and credit unions that supported their commercial clients through the ERC process now face a new and meaningful risk. If those businesses experience an audit or a clawback, their liquidity can change overnight. Deposit balances may fall. Loan performance may shift. The stability of a commercial portfolio can be strained. Institutions that prided themselves on guiding clients responsibly through the ERC period are now seeking solutions to preserve those relationships and protect their balance sheets.

Compounding this situation is a very clear shift in the IRS’s enforcement posture. The agency has publicly committed to expanding ERC oversight and is now deploying advanced artificial intelligence to identify, analyze and audit claims more efficiently than ever before. This technology allows the IRS to scan enormous volumes of data, identify patterns, cross-match records and flag filings with remarkable precision. As a result, audit frequency is expected to rise and the timeline between identification and review will continue to shorten.

Most businesses are not equipped to defend an ERC audit without experienced support. They do not have tax attorneys on standby, nor do they have the resources to dedicate time and energy to detailed documentation requests or formal IRS correspondence. The emotional toll of facing an audit alone is heavy and the financial risk can be significant, especially for those who took advances or already spent their ERC to stabilize operations.

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Why Harbor Shield exists

This is the environment that led The Anchor Group to create Harbor Shield. It is not simply an add-on service. It represents a strategic, intentional solution designed to protect businesses and financial institutions that did everything right during the ERC period and now deserve stability going forward.

Harbor Shield provides up to fifty thousand dollars in covered legal defense costs for each quarter of ERC protection. It ensures that a business has direct access to experienced IRS tax attorneys who assume responsibility for communication, documentation, defense preparation and overall audit strategy. Owners no longer face the IRS alone. For banks and credit unions, Harbor Shield provides a layer of protection that helps preserve the financial health of their commercial clients and reduces the potential downstream impact of an audit-triggered liquidity event.

A critical feature of Harbor Shield is its proactive monitoring component. Legal professionals review the ERC filing in advance of any notice, allowing them to prepare long before an audit ever begins. This preparation reduces uncertainty and creates confidence for both the business and its financial partners.

There is one essential point every ERC recipient must understand. Once an audit notice has been issued, Harbor Shield cannot be added retroactively. With AI-driven enforcement accelerating, the window to secure meaningful protection is narrowing, and the businesses that move early will be the ones that maintain stability regardless of what the IRS does in the coming years.

My involvement with ERC has given me a deep appreciation for the resilience of the business community. I watched owners fight to keep employees paid when revenue was uncertain. I watched banks and credit unions step in to support their commercial clients through extraordinary challenges. Those efforts helped keep communities alive and businesses intact. My commitment today is to ensure that those same businesses and financial institutions have the protection they need as the IRS adopts a far more aggressive stance.

If you claimed the ERC, or if your commercial clients did, now is the time to take a serious look at audit protection. I will gladly walk you through Harbor Shield personally and help you understand how it stabilizes your business, strengthens your financial position and preserves the relationships you depend on.

You earned your ERC. You took care of your people and your community during a moment when leadership mattered most. You deserve to keep the credit you earned and to operate with confidence, knowing your filing is protected.

Harbor Shield was built for this moment. Let us help you protect what you worked so hard to secure.

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