Directions for responding to Employee Retention Credit disallowance letter

Businesses that claimed the Employee Retention Credit may have received IRS Letter 105-C, a disallowance letter, if the IRS identified their claim as ineligible.
A new page on IRS.gov, Understanding Letter 105-C, Disallowance of the Employee Retention Credit, can help tax professionals and business clients learn about next steps if they disagree with the disallowance. This page has information on:
• Rechecking eligibility for the credit before disagreeing
• Responding to the letter, including what documentation to send the IRS
• Requesting an appeal or filing suit and the timelines to do so