IRS Seeks Evidence From Businesses That Claimed Covid Tax Break

The IRS is quietly piloting a new approach to verifying employee retention tax credit claims by sending documentation requests to taxpayers, leaving businesses scrambling to prove they deserve the credit.

Businesses in January received what’s called Letter 6612 alerting them that their pandemic-era claim is under audit and on hold. The letters are accompanied by Form 4564 requiring the taxpayer to provide detailed documentation for 13 multi-part questions within about a month of receiving the letter, according to one of the letters obtained by Bloomberg Tax

“Three weeks is not a lot of time to get that information together for ...