Receiving a tax notice or letter is never a pleasant experience. It can be confusing and frustrating if you don't understand why you received the notice in the first place. That's why we wrote The Ultimate Guide to Tax Notices and created a tax notice library filled with the most common tax notices and letters you might receive. We believe the process of staying compliant with your taxes should be as effortless as possible.
General Information
- What is the notice number? LTR106C
- What government agency sends this notice? The Internal Revenue Service (IRS)
- What is this notice about? The IRS has partially disallowed the Employee Retention Credit that you claimed either as a refund or as a reduction of the tax you owed for the tax period.
- What should you do if you receive this notice? If you agree with the IRS’s decision, you don’t need to do anything else. If you disagree, you can respond to the letter with an explanation and supporting documents. Be sure to let the IRS know you want your claim sent to the IRS Independent Office of Appeals if they can’t fully allow it. Remember, you have two years from the letter’s date to either resolve your claim or file a lawsuit.
FAQs & Additional Information
- How long do I have to take action?
- You have two years from the date on the 106C letter to settle the issue or file a lawsuit.
- This deadline continues even if you ask Appeals to reconsider. If Appeals finishes its review after the two-year deadline, you may lose the chance to receive a refund.
- What happens if the IRS eventually allows my claim?
- If a refund is approved, the IRS generally issues it about six to eight weeks after they process your response and adjust your account.
- What if I owe money instead of getting a refund?
- The IRS will send a balance due notice.
- Pay as much as you can by the due date to reduce penalties and interest.
- If you need a payment plan or other options, check out the IRS website for details.
- Is Appeals part of the IRS?
- The IRS Independent Office of Appeals is separate from other IRS offices and is dedicated to resolving disputes fairly.
- You can still file a lawsuit if you’re not satisfied with the outcome in Appeals or if time is running out.
- Where do I go for additional help?
- Use the toll-free number on your notice to contact the IRS for guidance.
- Consider consulting a tax professional if you have specific concerns or need help with filing suit.
What does it look like?
Resources
Looking for more information about this notice? Here are some helpful resources:
How can we help you today?
Are you looking for more information about your tax notice or other challenges? DiMercurio Advisors has a dedicated team supporting tax notices, audits and more. We are passionate about ensuring you are well-informed and in control of your tax situation.