Goldburd | Goldburd McCone LLP

For nationwide tax guidance, call:
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Goldburd | Goldburd McCone LLP

For nationwide tax guidance, call: 212-302-9400 or toll-free at 844-653-2873.

Serving Individual And Corporate Tax Clients Nationwide From Our New York, New Jersey, Florida And California Offices

Steven Goldburd and Benjamin A Goldburd

Since 1983, our tax firm has skillfully represented individuals and corporations across the United States and around the globe from our offices in New York, New Jersey, California and Florida.

2021 ERC: IRS Initiates Recapture Letters

by | Jul 5, 2024 | Tax Audits

If you filed for the Employee Retention Credit (ERC) in 2021, you’ve likely been worried about receiving one of those fear-filled letters from the IRS. The program has been in the spotlight of auditing for several months and continues to take the attention of the IRS and taxpayers alike.
The Internal Revenue Service (IRS) has reportedly initiated processes for sending out recapture letters on ERC claims in the year 2021. The receipt of this letter does not necessarily mean that an invalid claim was filed, but simply that there was a flagged discrepancy, and the claim is being audited.
For example, if a company reported a certain number of employees to the Social Security Administration, but this number did not match that claimed for the credit – this mismatch will be flagged and further investigated. As the program left taxpayers in confusion and opened the doors for mass mis-filings, these discrepancies are likely common.
For those who receive a recapture letter from the IRS, or any other letter, contact a tax professional to explore your options. At Goldburd McCone, we can guide you in understanding your situation, and assist you in alleviating penalties. For more guidance on ERC audits, check out our blog; Three Things To Know As The IRS Prepares To Ramp Up ERC Audits.