The Internal Revenue Service (IRS) has extended the deadline for appealing a denial of an employee retention tax credit (ERTC) claim, and for paying a claim after the two-year deadline for an appeal of a denied claim.
The usual rule is that taxpayers appealing a denial of an ERTC claim have two years after denial to challenge the agency’s decision. Also, claims that win on appeal must be paid within that two-year time frame. On April 27 the IRS announced that it would allow some claimants to apply for an extension to their appeal. The extension applies to claimants who have six months or less left in the two-year window and are still awaiting a response from the IRS. The extension would also allow the IRS to pay successful appeals claims past the two-year window.
The IRS is behind in processing ERTC claims and appeals, and that has put taxpayers with legitimate claims at risk for getting through the process within the two-year permissible window.
Prospects: The extended deadline could help those with pending appeals of denied claims who are facing delays due to IRS failure to respond in a timely manner. Any NAIFA member in that position should consider filing with the IRS for an extension of the deadline for settling ERTC claims.
NAIFA Staff Contacts: Jayne Fitzgerald – Director – Government Relations, at jfitzgerald@naifa.org