While the IRS created a moratorium on new Employee Retention Credit (ERC) claims in September of last year, they have continued to process previously filed claims. However, increased concerns about fraudulent claims have led to a more rigorous review process.
In January, the IRS began issuing Letter 6612, essentially auditing ERC claims before processing them. If you recently received Letter 6612, don’t panic, but be sure to respond within 30 days. Letter 6612 is a notification that your ERC claim is under audit and temporarily on hold, requiring additional documentation for verification. Failure to respond means no refund will be issued.
Letter 6612 is not the same as Notice CP271. Notice CP271 serves as an alert of the aggressive advertising related to ERC. It prompts you to verify the accuracy of your ERC claims, outlines procedures for withdrawing or amending claims, and offers an eligibility checklist to ensure you qualify. It also requests information regarding ERC preparers, indicating a concerted effort to identify those unscrupulous facilitators.
What should you do if you receive Notice CP271?
If you feel your previous preparer didn’t go through the proper qualifying process, Notice CP271 gives you the means to amend or withdraw your claim.
What should you do if you receive Letter 6612?
The letter outlines the information the IRS is requesting to verify your ERC claim. You must carefully review the letter and enclosed forms to understand the specific documentation needed.
Here’s how Boris Benic and Associates can help:
- Understanding the request: We can work together to decipher the specific information the agency is asking for.
- Verifying eligibility: We can ensure you meet the program’s eligibility requirements and that credits were calculated correctly.
- Gathering documentation: We can assist you in collecting the necessary documentation to support your claim.
- Crafting a response: We can collaborate on a clear and concise response that addresses the IRS’s concerns.
Receiving correspondence from the IRS can be unsettling, but with the proper guidance and support, you can effectively navigate the process. Let Boris Benic and Associates help you achieve a successful outcome.