IRS sends thousands of letters disallowing improper ERC claims

As part of continuing efforts to combat dubious Employee Retention Credit (ERC) claims, the IRS is sending letters to thousands of taxpayers notifying them of disallowed ERC claims. The IRS is rejecting claims to entities that did not exist or did not have paid employees during the period of eligibility.

These letters are part of an expanded compliance effort that includes a special withdrawal program for those with pending claims who realize they may have filed an inaccurate tax return.