How to Withdraw an ERC Claim
How to Withdraw an ERC Claim
The IRS is now providing a process to withdraw an invalid ERC claim.
The IRS just announced a process to allow taxpayers to withdraw an invalid ERC claim.
A substantial amount of fraudulent Employee Retention Credit claims has likely been filed in the last year or so and the IRS is sitting on many of those claims. Farmers who did not see at least a 20% reduction in gross receipts on an aggregated basis likely have an invalid claim and if they want to withdraw the claim, the IRS has provided steps to take.
There are three separate situations that may apply to you as follows:
You haven’t received a refund and haven’t been notified your claim is under audit,
You haven’t received a refund and you’ve been notified your claim is under audit,
You received a refund check but haven’t cashed or deposited it.
If you have not received a refund or an audit notice, then you simply prepare a copy of the Form 943, write withdrawn on the left-hand margin of the form and then sign and date it on the right-hand margin of the form. You then fax or mail the form to the IRS.
If you are under audit for the claim, you would essentially do the same but provide the form directly to the auditor or the office where the notice was received from.
If you received the refund but have not cashed it, you would endorse the check with the word VOID and ERC Withdrawal and mail it to the processing center in Cincinnati, Ohio.
The process appears to be fairly easy and since you have not received any money from the IRS from an invalid ERC claim, you should not be charged any interest or penalties.
Remember, that any farmer ERC claim that is not based on a reduction in revenues of at least 20% for 2021 is likely an invalid claim. This is your chance to get a do-over with no penalties and the process is easy.