IRS Letter 6612, Notice of Audit and Request for ERC Related Documentation, requires an employer to submit proper documentation within a short time frame—only 30 days from the date the IRS mails the letter. If an employer fails to meet the deadline or fails to receive an extension, the IRS will disallow the ERC claim in full.

If you need assistance defending your ERC claim in an examination, don't hesitate to reach out to us at (443) 545-3023 or schedule a confidential consultation.

What is Letter 6612?

In the latest wave of ERC audit measures, the IRS has begun mailing Letter 6612 to employers whose ERC refund claims are still pending. This is an attempt to weed out ineligible claims. The examination is conducted by correspondence only and requires the employer to submit documentation within 30 days of the letter's mailing date. If an employer fails to meet the deadline, the IRS will disallow the ERC claim in full.

Required Documentation for ERC Claims

The Form 4564, also known as the Information Document Request (IDR), is included with Letter 6612. It requires employers to submit documentation for every quarter for which the Employee Retention Credit (ERC) was claimed. This documentation includes:

• For full or partial suspension: Documentation proving business operations were suspended due to governmental orders, including the specific orders, a written explanation of how the orders affected the business, and contemporaneous records.
• For gross receipts test: Documentation supporting the required decline in gross receipts, a written explanation of how eligibility was determined, and how aggregation rules were applied.
• For wage eligibility: Documentation proving ERC was not claimed for wages already used for other COVID-19 relief programs like the Paycheck Protection Program (PPP), the Shutter Venue Operators Grant (SVOG), or the Restaurant Revitalization Fund (RRF).
• For PPP loans: Documentation related to PPP loans received, including loan forgiveness applications and letters, and details about the covered period.
• For income and employment taxes: Copies of income tax returns, employment tax returns, and Forms W-2.
• For wage expense reduction: A copy of the amended income tax return showing the claimed wage expense was reduced by the amount of the ERC.
• For certain employee types: Documentation showing that ERC was claimed solely for wages paid to employees who were not performing services.
• For related individuals: Identification of employees and their relationship to majority owners for any claims related to wages paid to them.