Employee Retention Tax Credit

Good Afternoon,

For those clients who applied for the Employee Retention Tax Credit (ERTC), the IRS is in the process of mailing denial and disallowance letters to applicants who may or may not have received the tax credit. There are three types of letters: 105-C, which is notice of complete disallowance, 106-C, which is notice of partial disallowance, and 6577-C, which is notice that the IRS is disallowing previously refunded credits and is requesting repayment. The letters have a deadline for response of 30 days or less with very limited options available once the deadline has passed. It is extremely important to act quickly if a letter is received. Please reach out to your MHCS advisor for guidance if your company has received one of these letters, even if the deadline for response has passed.

Sincerely,
MHCS