IRS Sends 20,000 Letters rejecting ERC Claims

In September the IRS took a bold move in the fight to resolve Employee Retention Credit (ERC) Fraud Claims by halting the program. In a move to further combat dubious Employee Retention Credit claims,  the Internal Revenue Service (IRS)  began sending out over 20,000 letters to taxpayers earlier this month, notifying them of disallowed ERC claims. These letters are part of the IRS's efforts to prevent improper ERC payments from being made to ineligible entities. However, this increased scrutiny of ERC claims can be a complex challenge for businesses and organizations to navigate.


At Notice Ninja, we understand the importance of staying on top of tax and compliance notices, and our digital notice compliance platform, is here to help. 


Understanding the IRS's Recent Actions:


The IRS's recent mailing of disallowance letters is part of a broader effort to crack down on ERC claims that do not meet the basic eligibility criteria. These letters are being sent to entities that either did not exist during the period of eligibility or did not have paid employees when claiming the credit. The goal is to prevent refunds from going to ERC promoters, protect taxpayers from incorrect refunds, and save IRS resources by disallowing incorrect credits before they enter the audit process.


While the IRS respects taxpayer rights and allows for responses and appeals, the disallowance letters underscore the importance of getting ERC claims right from the start.


How Notice Ninja Can Help:


Receive and Track Notices: NOTICENINJA platform can help businesses efficiently receive, distribute, and organize IRS notices, including disallowance letters related to ERC claims. Our platform ensures that no notice goes unanswered and keeps your compliance process streamlined.


Respond Effectively: Understanding how to respond to IRS notices, especially those related to complex tax credits like ERC, can be challenging. Notice Ninja provides guidance, resources, and a library of prebuilt template letters to help you craft an effective response, ensuring that you have the best chance of resolving any issues.


Track Compliance: Our platform allows you to track your compliance efforts and monitor the status of your responses to IRS notices. This ensures that you have a complete record of your interactions with tax authorities, with easy accessible audit trail. 


The IRS's actions to disallow ERC claims highlight the importance of effective notice compliance for businesses and organizations. NOTICENINJA platform is your trusted partner in managing tax and compliance notices, including those related to ERC. We help you receive, respond to, and track notices efficiently, ensuring that you remain in compliance and avoid potential penalties.


As the IRS continues its review of ERC claims and introduces new programs, you can count on Notice Ninja to keep you informed and supported throughout the process. Stay ahead of tax and compliance notices with Notice Ninja and enjoy peace of mind in your compliance efforts.