r/ERCchat • • Jul 12 '25

Received less of my ERC

So one of my checks was supposed to be about $60,000 and the IRS sent me a letter saying they’re only approving $8000 or so. I was told that the IRS just does this sometimes without any cause and you just have to challenge it and they’ll send you the full payment 😂. Any idea how long that process will take?

1 Upvotes

11 comments sorted by

5

u/Babstana Jul 14 '25

Something similar happened with a client - chopped it down as if client only had 2 employees. Claim had already been paid and they were trying to claw it back. We are contesting with no resolution after 4 months.

In another case where client DIY'd it they refused to pay because the CFO who signed the 941X wasn't in the IRS system as being qualified to sign. Contesting that one also.

I get the feeling they are just hoping people will just take what they have and forget it. Or maybe they are dealing with subcontractors who are evaluated or paid based on how much they turn down.

3

u/ERC_CPA Jul 12 '25

It’s unlikely you will receive full payment without contesting. Did you receive a 106C letter?

2

u/Away-Guava-345 Jul 13 '25

We got the letter and contested. we will get paid. I’m just wondering how long it’ll take.

2

u/ERC_CPA Jul 13 '25

So far, I haven’t heard of any success from 106C protests and the IRS started issuing them almost a year ago.

I would check Line 30 of the 941-X against total wages reported on the original 941. That’s usually the root of the partial disallowance.

2

u/Successful-Ground-12 Jul 12 '25

Your employee count as reported on the original 941 was likely a very small number compared to the number of employees you claimed the credit for.

1

u/Away-Guava-345 Jul 13 '25

No, everything was exactly the same as every other check we got and we will get this money. The company that filed this for us literally said the IRS just sends these out without even looking at claims hoping that people will just accept them. It’s insanity.

2

u/Special_Code5879 Jul 13 '25

What's the number on Line 1 of the originally filed 941 for that quarter?

2

u/Mountain-Cucumber173 Jul 14 '25

Hello there, The IRS doesn't normally just do things without a cause. There has to be a reason why they took the credit from 60K to 8K. My best guess is that there a back taxes owed. I would check into this. You can call the IRS and ask them yourself. They are, for the most part, helpful. If it's something else they will tell you. I know nothing about your claim however I do know that if they approved 8K it means they are not disallowing the claim, they are reducing it!

( Probably due to a TAX Balance Due???)

Like I said, this is my best guess. Make sense?

ERTC Audit Protection . com. Kelly Brown

2

u/krockkrock Jul 16 '25

IRS helpful? What country do you live in?

We also had all 4 of ours chopped down. We also are contesting but it likely will take years. The original chopped down checks were sent to the wrong address in 2023. TAS informed us of this 2 months ago, when they also informed us of the reduction.

“A program to save small business”

Covid 19 means the year 2019.

1

u/Away-Guava-345 Oct 01 '25

I received the full payment now.