IRS Announces Streamlined Process for ERC Extensions

Last week, the IRS announced that it has developed a new streamlined procedure that allows taxpayers to request additional time to appeal disallowed employee retention credit (ERC) claims. Because the IRS temporarily stopped processing ERC claims adminst widespread fraud and abuse, many taxpayers experienced delays in having their claims resolved. Often, taxpayers who received disallowance notices later requested review by the IRS Independent Office of Appeals. The statute of limitations for filing a lawsuit is not paused during this administrative appeals process (after a claim is disallowed, the taxpayer has two years to file a lawsuit if the issue isn't resolved administratively). The IRS has now developed an online portal to allow taxpayers to submit Form 907 (the form used to request an extension). Once the IRS countersigns the request, the extension is granted. The online procedure is available only to taxpayers who have less than six months to file a lawsuit challenging a disallowed ERC claim. Qualifying taxpayers can request the extension using the IRS Document Upload Tool, by going to IRS.gov/DUTReply and selecting notice 'CP320B' from the drop-down menu. For more information on the ERC, visit Tax Facts Online. See Q 8555