The IRS is sending out up to 30,000 Employee Retention Credit (ERC) recapture letters this fall, affecting over $1 billion in claims. They notify business taxpayers that the IRS is reversing or recapturing their previous ERC credit.
If you receive an ERC Recapture Letter and agree to the proposed recapture amount, you should submit a signed statement and make a payment if you are able to. If you don’t submit a payment, you will receive a balance due notice, if applicable, that will include penalties and interest.
If you disagree with the proposed changes, you should send a statement explaining the reason for the disagreement and include any relevant facts that support your ERC claim.
If you don’t provide supporting documents or don’t respond to the letter, the IRS will adjust your account for the amount of the proposed change plus any applicable penalties and interest, and send you a balance due notice, if applicable. Click here to learn more.
Contact your Stephano Slack tax professional at 610-687-1600 or [email protected] to discuss your options.
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