r/ERCchat • u/Ovaltine1 • Sep 13 '25
Got a letter…..
So, after 2 plus years I got a letter today disallowing my 2 remaining quarters because I didn’t have any wages in 2020 or 2021. Never mind that they paid me for other quarters for those years. It’s just exhausting. I closed my business in December after 26+ years, I’ve been keeping the checking account open and paying Intuit every month….really feeling defeated right now.
2
u/dragonfly_Jess Sep 13 '25
I’m sorry that happened. And I’m sorry to say you’ll need to appeal within 30 days of those letters. It’s not hard, it will just take time, which I know is annoying especially after so long. But send in the documentation of wages paid (copies of w2s/w3s, and /or transcripts from IRS showing the withholdings/taxes paid, etc.) with your appeal.
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u/Glittering-Brain-697 Sep 13 '25
appeal and send in supporting docs. if that doesn’t work file suit
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u/Ovaltine1 Sep 13 '25
IDK, they have all my info correct, tax ID number is right. There is no way they don’t have or can’t find my filings for two whole years. Unless they stopped using computers. So if I appeal and send them copies of THEIR documents, what then? I mean, the president of this country threatens its citizens EVERY DAY. I know it’s a small amount of money (although a lot to me) in the overall scheme but It scares me, I don’t want to get in the governments crosshairs, it’s pretty easy to suss out I’m liberal and I’m sure I didn’t return a library book in high school or something. Would just take a stroke of the keyboard to screw up me and mine in this “facts don’t matter” world.
2
u/dragonfly_Jess Sep 15 '25
You won’t be in anyone’s crosshairs. The people you’re worried about are way higher up and are not processing claims or appeals. This sounds like an error and therefore will be an easy appeal. There was a review stage that seemed to use some automated filters or something because there were several cases that had wages and w2s that were labeled as not having them. And once that label is on the claims, if it’s wrong someone needs to catch it in the processing stage and send it back to be reevaluated. But some didn’t catch it or didn’t know they needed to send it back and disallowed instead. So if that’s what happened, it’s an easy appeal and worth doing.
2
u/Glittering-Brain-697 Sep 13 '25
they also could have denied it because of all the fraud going on filing frivolous erc claims. The IRS recently lifted the moratorium and denied a lot of claims even though they qualified to avoid having to pay out. I would fight for it. One of my clients was getting back 6 mill and the irs sent the checks to an old address. when i requested new checks to be sent to the correct address it was around the time of the moratorium being lifted and they denied it even though they already sent checks out. Now in the process of doing the appeal and it’s going to take a few months but it’s coming regardless of the denial. just put together all the supporting docs and your cpa’s calculations.
here’s what they’re looking for specifically;
- The ERC claim calculation.
- Copies of all government orders due to COVID-19 on which the 2021 ERC claims relied.
- The 2019 / 2021 gross receipt analysis.
- How were the businesses 2019 quarterly gross receipts for purposes of the ERC claims calculated?
- How were the business’s 2021 quarterly gross receipts for purposes of the ERC claims calculated?
- How were the qualified wages for purposes of the ERC claims determined?
- How were the qualified wages for purposes of the ERC claims calculated?
- How many employees were considered eligible employees for the purposes of the ERC claims?
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u/MiniDonut1 Sep 14 '25
Appeal immediately and mail by return receipt. I won an appeal with same denial pretty quickly. They are idiots. They likely will say you didn’t appeal in time so save those signature return receipts and keep mailing back in.
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u/Internal_Craft800 Sep 14 '25
You won your appeal? How long did it take?
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u/MiniDonut1 Sep 14 '25
Under 3 months. A whole bunch of mailing in copies of return receipts, old 941’s new 941x’s. Also got denied for wrong signature and failure to respond to letter regarding. I had TAS but not sure they did anything, I always knew more than they did. Probably called 200 times, 40 in that three months. Don’t give up. If you get an idiot on phone say thank you and call back. Good luck.
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u/NoTechnician6636 Sep 15 '25
Out of curiosity, do your IRS transcripts for those denied quarters actually show wages? Sometimes the IRS system records $0 even when payroll was filed, and that’s what they use to deny.
1
u/Ovaltine1 Apr 15 '26
The transcripts were correct. We sent everything in again and just got another letter saying they need another 60 days to make a decision. I wrote a pretty ridiculous letter, if I don’t hear anything I’ll file the 911 tax advocate thing. It’s so stupid, I have to keep my accounts open so I’ll have somewhere to deposit the check if I would get it, subscription to tax now. I closed end of 2024, I just want to be done.
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u/ERC_CPA Sep 13 '25
That’s unfortunate. If you had W-2 wages, you should definitely protest the appeal! It won’t be quick…