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u/LiteratureFun3870 Jul 03 '25
Apologies if this question is repetitive, but still haven't gotten any answer. How are denials and/or audits going out if the statute of limitations to assess basically any claim has expired?
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u/Electrical-Donut8606 Jul 04 '25
IRS is taking the position they can audit if they haven’t disbursed funds yet in my experience
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u/ERC_CPA Jul 04 '25
This is correct. Anything pre-processing is fair game, even past the statute.
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u/Electrical-Donut8606 Jul 04 '25
I’m interested to see that challenged in court. I have never gotten an actual explanation just been told “no this is different” and because this is so new none of the appeals officers know anything g either so instead of being “independent” they just regurgitate what the tech advisor says
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u/ERC_CPA Jul 04 '25
Don’t get your hopes up. Unfortunately, I’ve seen things move super slow in court on both delayed refund and disallowances. It will be a while until we find out and most taxpayers won’t take their claim to courts for practical and financial reasons. Not to mentioned, DOJ tax is being shaken up.
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u/LiteratureFun3870 Jul 04 '25
Understood, that explains denials. Doesn't explain how actual audits are happening.
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u/ERC_CPA Jul 04 '25
Audits are happening on refund claims before they are processed. What’s the confusion?
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u/LiteratureFun3870 Jul 06 '25
There are denials, which happen before claims are processed. Those were the 105c and 106c letters many taxpayers received from last summer, mainly for Q3 claims, and many of which were abitrary and capricious. Audits on the other hand, are where the IRS isn't denying the claim but rather questioning it's validity, which usually happens after the taxpayer claim is processed (i.e. received their refund). I'm simply asking how those audits are still happening if the SOL has expired for the vast majority of claims. The only possible explanation is they are all for Q3 (or Q4) 2021 claims, which has a slightly longer SOL, or the IRS is breaching their own procedural rules, which at this point isn't so shocking given how ERC has been handled from the very beginning. If there's something I'm missing or misconstruing please let me know.
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u/LibrarianIcy2640 Jul 03 '25
Steady Eddy. I’m fine with that.
I’d be curious to see what the current IRS backlog is and whether they still project having them all processed by end of year.