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IRS ERC Disallowance Notices: What You Need to Know

The IRS has announced a significant development regarding the Employee Retention Credit (ERC). If you or your business filed an ERC claim, you may receive a disallowance notice or a request for repayment. The IRS is issuing these notices automatically or based on a preliminary calculation that may not fully account for the complexities of the program’s rules. With 840,000 to 980,000 notices expected to be sent in the coming months, here’s what you need to know.

What’s Happening?

The IRS initially projected the ERC program to pay out $77 billion; however, over $230 billion has already been distributed. Additionally, 1.4 million claims remain pending. Of these, 60–70% are expected to receive additional scrutiny or notices.

Using time during the recent moratorium, the IRS digitized its ERC claims process and is now sending automated disallowance notices, including:

Notice 105C
Notice 106C
Notice 6577

Expect waves of 30,000 to 40,000 disallowance notices every 4–8 weeks, affecting both partial and full claims. These notices require swift action as response deadlines are often short—ranging from 15 days to a few weeks.

IRS Investigations and Audits

The IRS is also […]

By Linkenheimer LLP|2024-12-06T04:27:53+00:00December 6th, 2024|irs|0 Comments

National Cybersecurity Awareness Month Reminder: IRS and Security Summit Online Safety Tips

As National Cybersecurity Awareness Month ends and preparation for next tax season begins, the Internal Revenue Service and its Security Summit partners today reminded taxpayers to be wary of online threats like identity theft and fraud.

Whether shopping online or browsing social media, people unfamiliar with online security could be putting themselves at risk. Lax online behavior can open the door to swindlers eager to swipe people’s personal information and leave themselves vulnerable to tax-related identity theft.

The IRS and Security Summit alert taxpayers to remain vigilant and to teach children and teens how to recognize and avoid online scams to minimize their chances of falling prey or unwittingly exposing their families to identity theft and tax fraud.

The public-private sector partnership encourages everyone to be aware of the many security vulnerabilities they face online and to review a wide range of resources available to them as October’s National Cybersecurity Awareness Month has drawn to a close.

Members of the Security Summit – a coalition that includes tax software and financial companies, tax professionals, state tax administrators and the IRS – also offer multiple online safety recommendations to protect taxpayers from […]

By Linkenheimer LLP|2024-11-05T17:14:34+00:00November 5th, 2024|cybersecurity, Tech|0 Comments

IRS Encourages All Taxpayers to Sign Up for an IP PIN for the 2025 Tax Season

As the 2025 tax season approaches, the IRS encourages all taxpayers to take an important step to safeguard their identity by signing up for an Identity Protection Personal Identification Number (IP PIN).

This simple yet crucial step can provide an added layer of security, helping protect against tax-related identity theft.

The IRS encourages taxpayers to sign up for IRS Online Account, which provides a quick and easy way to obtain an IP PIN. Signing up early will ensure taxpayers have extra safety by having an IP PIN to electronically file their returns when the filing season begins in 2025.

The IRS encourages people to sign up for an IP PIN before Nov. 23, 2024. After this date, the IP PIN system will undergo maintenance and will not be available again until early January 2025. Signing up for an IP PIN now will ensure that a taxpayer’s identity is protected when the filing season begins. New IP PINs are generated for the 2025 filing season during this period, so online enrollees must retrieve their new IP PIN starting early January 2025.

An IP PIN is a six-digit number that prevents someone else from filing […]

By Linkenheimer LLP|2024-10-30T14:21:56+00:00October 28th, 2024|irs, Tech|0 Comments

National Cybersecurity Awareness Month Reminder: IRS and Security Summit Online Safety Tips

As National Cybersecurity Awareness Month ends and preparation for next tax season begins, the Internal Revenue Service and its Security Summit partners today reminded taxpayers to be wary of online threats like identity theft and fraud.

Whether shopping online or browsing social media, people unfamiliar with online security could be putting themselves at risk. Lax online behavior can open the door to swindlers eager to swipe people’s personal information and leave themselves vulnerable to tax-related identity theft.

The IRS and Security Summit alert taxpayers to remain vigilant and to teach children and teens how to recognize and avoid online scams to minimize their chances of falling prey or unwittingly exposing their families to identity theft and tax fraud.

The public-private sector partnership encourages everyone to be aware of the many security vulnerabilities they face online and to review a wide range of resources available to them as October’s National Cybersecurity Awareness Month has drawn to a close.

Members of the Security Summit – a coalition that includes tax software and financial companies, tax professionals, state tax administrators and the IRS – also offer multiple online safety recommendations to protect taxpayers from […]

By Linkenheimer LLP|2024-11-05T17:04:11+00:00October 4th, 2024|cybersecurity, Tech|0 Comments

Protect Yourself from Identity Theft with IRS Online Accounts and IP PINs

In today’s digital world, identity theft and fraud are on the rise, especially during tax season and in light of the recent hack of the largest number of social security numbers to date. To help protect taxpayers from these threats, the IRS offers an important tool known as the Identity Protection PIN (IP PIN). Combined with setting up an IRS Online Account, these resources create an extra layer of security that can help safeguard your personal and financial information.

Why You Need an IRS Identity Protection PIN

The IP PIN is a six-digit number that provides protection against tax-related identity theft. It prevents someone else from filing a tax return in your name. The IRS encourages all taxpayers to obtain an IP PIN and establish an online account to ensure their identity and financial data remain secure. While the program is voluntary, it’s a strong line of defense against scammers attempting to steal your identity.

Important things to know about an IP PIN

It’s a six-digit number known only to the taxpayer and the IRS.
The program is voluntary, though it’s strongly encouraged.
In cases of proven identity theft, taxpayers will be assigned an IP […]

By Linkenheimer LLP|2024-09-09T13:51:40+00:00September 9th, 2024|fraud, irs, Tech|0 Comments