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How to Withdraw an ERC Claim

If you already submitted an ERC claim to the IRS, you are in luck. There is an opportunity to withdraw this claim if you are concerned about your eligibility. Businesses should never submit false claims to the IRS or it will put them at risk of an audit. To avoid this, make sure you are submitting your application with the help of an experienced ERC consultant and avoid common ERC scams that could put your claim at risk.


Business owner withdrawing ERC claim

Who Can Withdraw an ERC Claim from the IRS?

Employers can withdraw an ERC claim if they fit all of the following:

  • The business filed amended their tax return for the given tax year (Forms 941-X, 943-X, 944-X, CT-1X)

  • The business only adjusted their tax return to claim ERC

  • The business wants to withdraw the entire ERC claim

  • The IRS has not yet paid the claim or the business has not cashed or deposited the refund check

Businesses must meet all of the above requirements to withdraw an ERC claim. Withdrawing an ERC claim does not exempt a business from being investigated if they purposefully filed or assisted in filing a fraudulent claim.

Should My Business Be Worried About a False ERC Claim?

If you applied using the help of a certified ERC consultant, you will have nothing to worry about. Five Star ERC Experts provides audit protection to businesses eligible to apply. This ensures that you are in good hands when submitting to the IRS.

Businesses who applied using qualified wages and met all of the IRS eligibility requirements should not worry either. The IRS only audits businesses submitting false claims. These false claims do not meet their eligibility requirements.

One of the most common reasons that a business would be at risk of an audit is if they filed a claim through an ERC mill. ERC mills charge high upfront fees to submit businesses for the ERC tax credit. However, these ERC mills will submit a claim even if the business is not fully eligible. This puts the business at risk of an audit from the IRS. Through an experienced ERC consultant, such as Five Star ERC Experts, your business receives audit protection and never gets charged hefty upfront fees for submission. Five Star ERC Experts uses a compliant fee service model to ensure that businesses are in good hands.

Audits for False ERC Claims

The IRS has three years to audit most ERC claims. However, it has five years to audit payroll returns with ERC. When fraud is involved, the IRS can audit a business at any time. As long as you submitted an ERC claim with the help of a certified ERC consultant, you do not need to worry about being at risk of an audit. Five Star ERC Experts provides audit protection to all eligible businesses that they help apply for the refundable tax credit.

How to Resubmit an ERC Application

Does your business need to withdraw and resubmit an ERC claim due to an error noticed on your application? To resubmit an application, you first need to withdraw the initial claim and make sure that your withdrawal request was approved by the IRS. In most cases, businesses can withdraw their request using a withdrawal request form. If you hired a consultant to help you file your claim, contact your consultant directly if you want to request a withdrawal.

After withdrawing your application, the IRS will notify you via a letter in the mail whether your withdrawal request was accepted or rejected. If your withdrawal is accepted, you can amend your income tax return and resubmit. Resubmissions are best done with a trusted tax professional to guide you through the process. This ensures no errors are made the second time around.

How to Make Sure Your Application Is Accurate

Always make sure your application is accurate before submitting to the IRS. Triple check all of your information and make sure that it aligns with IRS ERC requirements. Make sure you have amended your tax return and applied for ERC using qualified wages paid to employees during the pandemic.

An experienced ERC consultant can help you resubmit your application while providing audit protection for extra peace of mind.

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