Need to Withdraw an ERC Claim? Bowers Can Help.

IRS Announces Procedures for Withdrawing ERC Claims

Over the course of the past several years, you may have been approached by a “consultant” regarding eligibility and filing for the Employee Retention Credit (ERC). Many of these consultants, or “credit mills,” took aggressive – and in some cases erroneous – positions in determining eligibility for the ERC.

These credit mills often liberally applied the IRS guidance, potentially exposing taxpayers to substantial interest and penalties, while requiring significant up-front fees for preparing and filing the credit claim forms, but only limited recourse should the IRS disagree.

If you have filed for the ERC and have not yet received it but are concerned that the claim may not be valid – good news. Bowers & Advisors may be able to help.

On October 19, 2023, the Internal Revenue Service announced the procedures for withdrawing ERC claims for those that filed and are concerned about their validity.

If you have not cashed or deposited any ERC funds received from the IRS for which you applied, you are eligible to withdraw the claims without any penalties for filing incorrect returns or receiving money to which you may not be entitled.

If you have any questions, please do not hesitate to contact your Bowers tax professional or info@bcpllc.com.