Time May Be Running Out to Challenge IRS ERC Denials

If you received a letter from the IRS denying your Employee Retention Credit (“ERC”), you need to be mindful of deadlines – deadlines which are beginning to arrive – and deadlines which have already passed for some taxpayers.

As a general rule, if the IRS denies a claim for refund, the taxpayer has two (2) years to file a claim in District Court to continue pursuing the refund. If that two (2) year deadline passes and the taxpayer does not file in District Court, the taxpayer is largely out of luck.

If you received a letter from the IRS denying your ERC for any reason, pull that letter out of your files. Check the date on the letter. If it has been close to two (2) years from the date of that letter, you should consider filing a complaint in District Court to pursue the claim. It does not matter if you filed a protest and are working with IRS Appeals. Filing a protest and requesting a hearing with IRS Appeals does not pause this two (2) year time period.

If you receives a letter from the IRS denying your ERC claim, and if is close to two (2) years from the date of that letter, give me a call to discuss whether you should file in District Court. Do not let that two (2) year date pass without considering whether it makes sense to pursue your ERC claim further.