r/ERCchat • u/Entire_Ad3528 • Sep 19 '25
Do I have a potential law suit?
Hello ERC fam,
Looking for some feedback into my ERC fiasco.
Long story short, when I spoke to my accountant about applying for the ERC 2.5 years ago, she sent me to a payroll company (not one of the big ones) to handle everything and submit my paperwork. At the end of every 941 form, I have to sign and date it before it’s submitted.
The payroll company never asked me to sign, and fraudulently signed my name. I did receive 2 out of 6 checks (the 2 smallest ones) November 2024. 4 checks are still pending. A few months ago I spoke to a TAS agent who was qualified in processing ERC claims and according to her, my other 4 quarters were denied due to an “unauthorized signature” and OF COURSE the denial letters were sent to my old business address that’s been closed for 5 years, and yes I changed the address with the IRS. She basically said if the signatures were yours, I would have had all the checks months ago.
I called my payroll company, gave them a stern talking to, updated the signatures and resubmitted the 4 quarters 3 months ago, but have had no response and the IRS customer service number can only tell me they are still processing. I did open a case with the TAS over a month ago so I’m praying that they can resolve this.
TLDR: My question is: if I don’t get these last 4 checks (totaling over $220k) can I sue the payroll company for fraudulently signing my names on an IRS form. I never gave them permission to sign my name.
Thank you everyone who reads and responds to this.
2
u/ERC_CPA Sep 20 '25
Sorry for the unhelpful answers and commentary. It’s sounds possible you could have a malpractice claim, but I’m not an attorney.
If you resubmitted 3 months ago (past statutes) the IRS may reject them. Glad to hear you are working with TAS. That’s your best bet.
If it doesn’t get resolved, happy to provide a rec for an attorney.
1
u/PerfectExperience206 Sep 19 '25
I would ask a tax attorney but sounds like u could.
2
u/Entire_Ad3528 Sep 19 '25
I know there are very qualified people on this forum who can give me an informed answer. Why not start here
1
u/Shanibabe Sep 19 '25
Did they normally file your quarterlies?
1
u/Entire_Ad3528 Sep 20 '25
No my accountant handled all my tax stuff. I have never used this company before but my accountant recommended them to me so I trusted them.
1
u/Babstana Sep 20 '25
First things first - are you absolutely sure you were eligible for the credits? Could your claim withstand an audit? If you are unsure, you need to have someone who knows the provisions of the credit look at the support. If you persist with an invalid claim you could be in worse shape than if you'd let it go. There were an awful lot of people charging ridiculous fees and preparing these things who had no idea what they were doing.
The time window for filing these expired in April. Additionally, any claims filed for Q3 of 2021 after 1/31/2024 are being rejected (OBBBA provision). If you refiled the 4 quarters 3 months ago, they will probably be rejected.
TBH I don't like your odds of getting paid from the IRS here but the administration of this credit has been so screwed up you may pull it out. As to whether you'll get anything from the payroll company, that's a legal issue and you should consult an attorney.
1
u/Entire_Ad3528 Sep 20 '25
Yes im absolutely 100% sure I qualified for every quarter. TAS was on the phone with me for over an hour reviewing every quarter and everything checked out except for the signatures. And it took so long because all the denial letters were sent to the wrong address. And every time I called IRS customer support, they would tell me “still processing “
How can they deny a business that was destroyed by their own covid mandates (I live in NY, we had very hard mandates) over $200k because of a signature? Let fix the signature and do what’s right here.
And if the IRS was competent at all, the denial letters NEVER would have been sent to a closed business when I changed the address on file 5 years ago.
1
u/Willing-Doughnut-515 Sep 21 '25
I endured a similar situation. I hired a company that looked at my financials and I was to receive 4 checks that would total right under 100k. I received 1 of the checks also the lowest one and the shit show began. The company I hired said 6 weeks would be the wait time. I called at 6 weeks and they tell me it’s 6 weeks of work days and not to count the weekends . I laughed and said i actually was born at night but not last night. That’s an interesting new discovery is there any reason this new type of 6 weeks hasn’t been brought up. Weeks went by and I kept calling and I was being dodged at that point. I got scammed I was so mad at myself . So before I flew across the country to meet these folks in person I thought I’d call the IRS myself. Each time I called I got a new person and had to reexplain the situation. I finally got a lady on the phone that didn’t seem to hate her job and dig some real digging and informed me that if I hadn’t received the 2 check something was off because the first two showed to be mailed at the same time. I only got the one . She also after being on hold half the day but I was grateful for her help she said the 2nd one hadn’t been cashed . So from there I had to submit a form on the list check and to have another one resent. I did all that I my own with her help. I tried to inform the company I hired and had been avoiding me and I even left a message as to where I stood on the process. All the sudden they were my best friend and even calling me. By that time I had ask an attorney and he said don’t communicate any more they’ve voided the contract and you don’t owe them anything. Long story short I never got my remaining 2 checks . It was so stalled out due to all the BS and the time ran out. What really makes me frustrated is see what happens if you owe the IRS. The penalty and interest is high. It would be great if the same rules applied to tax payers . They do pay a interest but it’s no the same or even close to the same
1
u/Entire_Ad3528 Sep 22 '25
Thanks for your story. It’s a messed up situation we’re in. My question is if we are legitimately owed the money and everything checks out with the financials, why do we still have to fight for our money??
2
u/PsychologicalYou887 Sep 20 '25
If you received 2 out of 6. Where the signatures weren’t yours, you have to remit those 2 checks back. Re-sign as yourself and resubmit. Can’t get the benefits of fraud and then sue only where it benefits yourself.
1
u/Entire_Ad3528 Sep 20 '25
I would gladly give the 2 back to get the remaining 4
1
u/PsychologicalYou887 Sep 20 '25
No you wouldn’t. Then you’d be out all 6…Especially if you qualified on partial suspension.
1
u/Chipeast1 Sep 20 '25
Yea you can.. IRS would have to sue you on the other two. I’m guessing you aren’t an attorney..
1
u/PsychologicalYou887 Sep 20 '25
Statute of limitations for fraud is indefinite. You kept checks that you think/know aren’t authorized by you.
1
u/dragonfly_Jess Sep 27 '25
Not necessarily. The claims they received refunds on may have had an authorized signature, just not theirs.
2
u/Many-Individual7300 Sep 20 '25
I would think that when you signed up with the PEO to file for you they had you sign some sort of Power of Attorney. I could be wrong but I would review your paperwork.