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The Employee Retention Credit (ERC) was designed to help businesses recover from the financial hardships of COVID-19. Unfortunately, as the IRS increases enforcement, many business owners are now receiving IRS Letter 6612, a notice that their ERC claim has been selected for audit or examination.
This letter can be intimidating, but it’s not an automatic employee retention credit disallowance. Instead, it’s an opportunity to prove that your ERC claim is legitimate.
Received Letter 6612? With the right documentation and professional guidance, you can protect your refund and avoid a costly ERC disallowance.
Have Questions? Call Us Today at 971‑234‑2400IRS Letter 6612 notifies you that your ERC claim is under review. It’s typically issued by the IRS from the auditing agent or department to begin a formal audit of one or more tax periods where you claimed the Employee Retention Credit.
Key points to understand:
Receiving a 6612 Letter does not mean you did anything wrong. It simply means the IRS wants to confirm that your claim aligns with program requirements.
There are several reasons the IRS may issue Letter 6612 (LTR 6612):
The IRS has made ERC enforcement a priority, sending both Letter 6612 and IRS Form 4564 IDRs as part of a broader effort to prevent fraud and recover improper claims.
Need clarity on your IRS Letter 6612? Speak with our ERC Specialists today —
Call us at 971-234-2400.
Responding effectively to IRS Letter 6612 can make the difference between a smooth review and a full ERC disallowance. Here’s what to do:
Identify which quarters are under audit, what documentation is required, and the response deadline (usually around 30 days). An untimely response will result in a full disallowance of your claim.
Prepare all supporting materials, including:
In most cases, the IRS will issue a Form 4564 audit request — also referred to as a form 4564 information document request or IRS Letter 4564.
This document lists every piece of evidence the IRS expects to see. Be sure to respond to every item listed. Missing even one category of records can delay your case or lead to disallowance.
Submit all requested materials by the due date, clearly labeled and organized. If you need extra time, you can request an extension before the deadline.
Experienced ERC attorneys and tax professionals know how to communicate effectively with the IRS, structure responses, and anticipate potential ERC disallowance arguments. A well-crafted reply can significantly improve your outcome.
Received IRS Letter 6612? Get professional guidance on how to respond and protect your ERC refund. Call 971-234-2400.
A thorough, timely, and well-organized response to IRS Letter 6612 increases the chances your ERC claim will be accepted without further dispute. Ignoring or delaying your response can lead to:
By addressing Letter 6612 carefully, you help ensure the IRS has a complete, accurate picture of your eligibility, and reduce your risk of an employee retention credit disallowance.
No. Letter 6612 is an audit notice, not a disallowance letter. It means the IRS needs more information before deciding. A disallowance would come later through a Letter 105C or Letter 106C if the IRS ultimately denies your claim.
IRS Form 4564, sometimes referred to as IRS Letter 4564, is the Information Document Request (IDR) used during audits. It lists specific documents you must provide, such as payroll reports, financial statements, and proof of government shutdowns.
Typically, the IRS gives about 30 days to reply. Always check your letter for the exact due date, and request an extension early if you need more time.
If you fail to respond, the IRS may deny your ERC claim outright and issue an employee retention credit disallowance letter. You could also face repayment demands plus penalties and interest.
We’ve helped countless businesses successfully respond to IRS Letter 6612 and IRS Form 4564 IDRs. Our CPA and Tax Attorney partners are here to help:
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If you’ve received a Letter 6612, don’t face it alone. Acting quickly can make all the difference in preserving your ERC refund.
Don’t hesitate to reach out for help — we’re here to guide you every step of the way
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