I hope you’re doing well! I wanted to start off with some positive news: we expect that most remaining ERC claims will be processed and paid out by the IRS within the first quarter of the upcoming year. If you’ve been waiting on your claim, there’s a good chance you’ll see resolution soon.
For those of you who have a PEO, it’s possible your claims will be included in the first quarter as well, but I can’t say I’m as confident due to PEOs being a third party. If I hear anything specific regarding PEO claims, I will notify you right away.
I also want to address the “105C disallowance letters” now being received by clients who filed after Jan 31, 2024 for Q3 2021. If you receive one of these letters, rest assured that attorneys are reviewing whether Congress had the authority to retroactively deny those claims. Although it may take some time, we’re still hopeful for a positive outcome.
For those of you who filed by the January 31 deadline but still receive a disallowance letter, it’s because the IRS opened your mail after that date, and did not record the postmark date. Please know this is indeed an error on their part. Just forward the notice to me and your ERC provider, and we’ll provide the IRS with proof of your timely filing to get it sorted out.
Finally, for those who erroneously received a 105C disallowance letter in 2024, and have since appealed, we are still waiting to hear when they expect to process those appeals. We hope this will be addressed in the first quarter of this next year.
As always, feel free to reach out if you have any questions. And stay tuned for some exciting news I’ll be sharing next year that I think you’ll find really valuable as a small employer.
Thanks again for your trust, and we’ll keep you posted!
Best regards,
Dean Francis
(804) 402-4905 | Connect on LinkedIn