New: Steps to Withdraw Your Employee Retention Credit (ERC) Claim “As if They Were Never Filed”

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New: Steps to Withdraw Your Employee Retention Credit (ERC) Claim “As if They Were Never Filed” 

With concerns on the rise about the accuracy of ERC claims, the IRS has provided procedures for eligible employers to withdraw ERC claims previously filed.

Commissioner Danny Werfel said in a recent statement, “The IRS is committed to helping small businesses and others caught up in this onslaught of employee retention credit marketing. The aggressive marketing of these schemes has harmed well-meaning businesses and organizations, and some are having second thoughts about their claims. We want to give these taxpayers a way out. … We continue to urge taxpayers to consult with a trusted tax professional rather than a marketing company about this complex tax credit.”

The newly outlined process allows you to withdraw your claim, to be treated as if it was never filed, helping avoid future repayment, interest, and penalties. You are eligible to use the ERC claim withdrawal process if:

  • You made the claim on an adjusted employment return (Forms 941-X, 943-X, 944-X, or CT-1X).
  • You filed the adjusted return solely to claim the ERC, with no other adjustments.
  • You wish to withdraw the entire amount of your ERC claim.
  • The IRS has not paid your claim, or the IRS has paid it, but you haven’t cashed or deposited the refund check.

If you have any questions related to an existing or previously filed ERC claim, please let us know. For detailed information on this process, please use the following link to the IRS website on how to Withdraw an ERC Claim.