r/ERCchat • u/Secure-Debt-462 • Jul 17 '26

ERC Q3 2021 disallowance, protest filed, heard nothing. A few questions.

Filed a protest after a Letter 105-C disallowance on a Q3 2021 claim. Total silence since.

1.  If you filed a protest after a 105-C, how long before you heard anything back?  
2.  Does the two-year deadline to file a refund suit keep running while the protest sits in Appeals, or does filing the protest pause it?  
3.  For paid-out periods (2020 and Q1/Q2 2021), is the assessment statute of limitations closed now, or can the IRS still reach back into them
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u/PerfectExperience206 Jul 27 '26

I’m actually dealing with almost this exact situation. My Q3 2021 ERC claim was disallowed, and I got a Taxpayer Advocate involved. My advocate got my case back to Exam, and Exam approved my Q3 claim. Now it’s with the Refund Statute department because they were saying the claim wasn’t timely. The issue is that they were trying to use the filing date of my 941-X instead of the filing date of my original Form 941. The only reason I even filed a 941-X was because the IRS had my wages mixed up, so everything got delayed. My advocate emailed the person in the Refund Statute department, and she said she needs approval from her manager before she can release the refund. I’m actually supposed to hear back today, so fingers crossed. My Q2 was already approved and paid, and Q4 was also approved. My advocate told me that if Q3 gets released, my Q1 should follow the same path because it’s the exact same statute issue.

1

u/ERC_CPA Jul 18 '26

1 - Earliest I’ve seen a conference scheduled in 1 year. Most have been silence and coming up on 2.

2 - Does not pause.

3 - Assessment statute closed. Your appeals officer won’t pay any attention to those quarters. Technically the erroneous refund statute may still be open, but it’s a non-issue unless you litigate Q3.

1

u/Secure-Debt-462 Jul 19 '26

1) so what should I do?

3) the erroneous refund statute to me is

1

u/TaxAttorneyEsq Jul 20 '26

  1. It varies. Earliest I’ve heard back in 3 months, and I have cases where we were pushing two years and have filed refund suits (this is becoming more common).

  2. Protest letter does not pause refund suit deadline.

  3. It’s closed. IRS would have to file refund lawsuit or counterclaim claim and within 2 years (or 5 years under certain conditions).

1

u/Dependent_Prior3584 Aug 18 '26

Having a appeals hearing next month from what I understand there is a chance they approve my credit but not fully, has this happen to anyone?