ERC Denial Protests Need More Time, Taxpayer Advocate Urges IRS

The IRS should give more time to businesses that want to appeal their disallowed pandemic-era tax credit claims, following muddled guidance from the agency, National Taxpayer Advocate Erin Collins said in her blog Wednesday.

A first wave of 28,000 letters disallowing employee retention credit claims went to businesses and tax-exempt organizations in July. But the letters didn’t lay out all the options for taxpayers if they disagreed with the decision. Others were received in error, some tax professionals said, causing further confusion in a contentious area for the industry.

“Considering the long delay in processing these claims and the errors ...