IRS offers extension process to taxpayers following rejected ERC claims

The IRS has announced a new process to help taxpayers who are disputing their disallowed Employee Retention Credit claims to request more time before their rights to a refund or to seek judicial review are gone.

When an ERC claim is rejected by the IRS, taxpayers receive a Letter 105-C or 106-C. These affected taxpayers generally have two years from the date of that letter to resolve their claim administratively or to file a refund suit in Federal court if they disagree with the IRS’s decision.

Taxpayers now with six months or less remaining in their time to file suit, and who are waiting for the IRS to consider their disallowance response to Letter 105-C or 106-C, may submit Form 907 requesting an extension. Learn more.