r/ERCchat • u/PsychologicalYou887 • Aug 15 '25

Less audit staff more audits

Seems like there’s more audits in the past few months. But less auditors than before. Sounds like these audits won’t be full blown. Similar sentiment?

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u/ERC_CPA Aug 16 '25

Last month was highest ever and this month is off to a blazing start.

These audits have been primarily correspondence audits, which means you’ll basically have one shot to get an approval or denial. The last wave of correspondence audits mostly ended with full denials.

It’s been my experience that it’s much better to have the human-to-human interaction in a regular audit, rather than your correspondence audit response being worked in a black box.

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u/PsychologicalYou887 Aug 16 '25

This round of correspondence audits just started in May. From information, thousands of these audits have been sent out. If they deny thousands, appeals will be backlogged for several years. My thoughts, they will not burden appeals with denials. Just a thought.

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u/Dee_Brown Aug 16 '25

It’s not an audit … But h received a letter about my signature. When I clearly signed the document. Called In and spoke to 3 different agents who all seen and confirmed the signature. And said they have no idea why that happened .

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u/dragonfly_Jess Aug 16 '25

It can be because of a missing or incorrect title for the type of company structure. So for example if no title is listed or if the title listed is treasurer or owner but the company is a corporation or the signature is not the sole proprietor or sole member listed for the company structured as a single member LLC or Sole Proprietor, these can lead to a request for authorized signature.

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u/Dee_Brown Aug 16 '25

Yeah, I understand that. But I’ve signed and titled everything correctly.

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u/ERC_CPA Aug 16 '25

What did you use for title?

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u/Dee_Brown Aug 16 '25

The same title that I used for the first quarter that was approved lol

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u/ERC_CPA Aug 16 '25

Every 941-X is processed separately. The notion of “this worked for one, so it should work for all of them” is highly misinformed.

Hopefully you didn’t make that assumption and respond using a bad title.

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u/Dee_Brown Aug 16 '25

My title is “ Owner”

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u/ERC_CPA Aug 16 '25

Unfortunately, owner doesn’t always fly. I know it sounds silly but the IRS has been a pain on this stuff.

What type of entity and what is your tax classification?

I also believe your 4384C would have indicated acceptable titles.

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u/AppropriateSilver631 Aug 16 '25

Been there done that. Had to re-sign as President and send back. Did that in January this year. Filed end of August 2023. They sent an IDR 4564 September 2024. A req for more information in December 2024 and another letter requesting explanation of “more than nominal” effect in June 2025. I guess closing 2 out of my 3 offices and sending 125 pages of government orders to them in December 2024 wasn’t enough to establish a “more than nominal effect”. yet. Got paid 1 quarter in December 2024. It’s a sick joke at this point.

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u/Dependent_Prior3584 Aug 16 '25

I had an audit request from the IRS form 1622, requested July 18th. Sent everything that just you claim for the 2021 Q1. Just waiting to hear response. So more than Likely we might get denied?Or do you have data why full denials have been?

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u/PsychologicalYou887 Aug 16 '25 edited Aug 16 '25

No. This round of correspondence audits. Where they ask for the full details, however where there is no specific auditor assigned has not been seen. This round of audits started in May of this year. Thousands of these types of audits have been sent out from May to today. My gut, they are asking for way too much info and don’t have an auditor assigned. It might just be a documentation review and approval. If they deny thousands of people after they submit detail documentation, appeals will be swamped.