On a Payroll Industry call with the IRS on Thursday December 7, 2023, our very own President and CEO, Andrew Lopez asked leaders within the Small Business/Self-Employed (SBSE) Division about the status of the ERC Withdrawal process.
"Once a request to withdraw an ERC claim is received at the IRS, what is the turnaround time for the agency to process the withdrawal?" asked Mr. Lopez. The IRS responded "the typical turnaround to process the ERC Withdrawal request is 30-40 days." In followup to that answer the IRS was also asked "What confirmations are being sent to employers once the ERC Withdrawal has been processed?". The IRS replied "Any employer who submits an ERC Withdrawal request and is approved, will receive a Letter 916C in the mail from the IRS in 30-40 days."
The IRS acknowleded there could be instances in which the ERC Withdrawal request is submitted and not processed before the IRS send out a refund check. In those instances the IRS stated "If the taxpayer receives a refund check from the IRS for ERC, they should follow the procedure under "You received a refund check but haven’t cashed or deposited it".
Forensic Payroll Consultants (FPC) continues to receive requests to withdraw ERC claims and is doing so for a fee of $50 per quarter requested. Please contact FPC for more information.