The Internal Revenue Service has created a process for taxpayers to The IRS is also working on guidance to help employers misled into claiming the ERC who have already received payment
IRS Commissioner Danny Werfel described the reason for the new process, which follows the establishment of a September 14 moratorium on processing new ERC claims.
“The aggressive marketing of these schemes has harmed well-meaning businesses and organizations, and some are having second thoughts about their claims,” he said in a prepared statement. “We want to give these taxpayers a way out.”
The moratorium is expected to last at least until January 1, while claims processing goals will go from 90 days to 180 days and longer if the claim faces further review or audit.
Employers can withdraw claims if they made no other adjustments, want to withdraw the entire amount for the claim and have not received a refund or have not cashed or deposited the refund check. Those not eligible for this process can reduce or eliminate the claim by filing an amended return.
The IRS has set up a special fax line to receive withdrawal requests. This enables the agency to stop processing before the refund is approved. Those unable to fax can via computer or mobile device can mail their requests.
Employers who have been notified they are under audit can send withdrawal requests to the assigned examiner or respond to the audit notice if no examiner has been assigned.
Those who received a refund check, but haven't cashed or deposited it, can still withdraw their claim. They should mail the voided check with their withdrawal request using the instructions at IRS.gov/withdrawmyerc.
