If you filed a claim requesting a refund for an Employee Retention Credit (ERC or ERTC) and would now like to withdraw your claim, this page will tell you whether you can do so and, if so, how to withdraw your claim. If you need help figuring out if you're eligible to claim the ERC, use the IRS’s Employee Retention Credit Eligibility Checklist and see signs your ERC claim may be incorrect. The withdrawal process is for taxpayers whose ERC hasn’t been paid yet or those who received a check but haven’t cashed or deposited it. If you request to withdraw your claim, you'll be asking the IRS not to process your entire adjusted employment tax return (Form 941-X, 943-X, 944-X or CT-1X) for the tax period that included your ERC claim. Claims that are withdrawn will be treated as if they were never filed. The IRS will not impose penalties or interest. If you already received the ERC, you can’t use the withdrawal process, but you may be eligible for the IRS’s second Voluntary Disclosure Program. If you made any other changes on the adjusted employment tax return or you only need to reduce your ERC claim (not withdraw it entirely), you can't use the withdrawal process. Instead, you need to amend your return. For more information on these situations, see the Correcting an ERC Claim – Amending a Return section of the frequently asked questions about the ERC. Work with a trusted tax professional if you need help or advice on this process or on the ERC. On this page Who can ask to withdraw an ERC claim How to request an ERC claim withdrawal What happens next Who can ask to withdraw an ERC claim You can use the ERC claim withdrawal process if all of the following apply: You made the claim on an adjusted employment tax return (Forms 941-X, 943-X, 944-X, CT-1X). You filed your adjusted return only to claim the ERC, and you made no other adjustments. You want to withdraw the entire amount of your ERC claim. The IRS has not paid your claim, or the IRS has paid your claim, but you haven’t cashed or deposited the refund check. If a third-party payer filed your ERC claim under its own Employer Identification Number (EIN) rather than your EIN, consult with them if you want to withdraw it. Third-party payers include certified professional employer organizations (CPEO), professional employer organizations (PEO) and IRC section 3504 agents. They handle clients’ payroll and tax reporting duties and often combine multiple employers’ payroll in their IRS filings. They may be able to file a supplemental claim to resolve multiple clients’ incorrect claims. Please note that if you willfully filed a fraudulent ERC claim, or if you assisted or conspired in such conduct, withdrawing a fraudulent claim will not exempt you from potential criminal investigation and prosecution. How to request an ERC claim withdrawal You will follow different steps depending on your situation. Section A: You haven’t received a refund and haven’t been notified your claim is under audit Section B: You haven’t received a refund and you’ve been notified your claim is under audit Section C: You received a refund check but haven’t cashed or deposited it Section A: You haven’t received a refund and haven’t been notified your claim is under audit If you filed an adjusted return (Form 941-X, 943-X, 944-X, CT-1X) to claim the ERC and you would like to withdraw your entire claim, use the process below. If you filed adjusted returns for more than one tax period, you must follow the steps below for each tax period for which you are requesting a withdrawal. To request a withdrawal, follow these steps: Make a copy of the adjusted return with the claim you wish to withdraw. In the left margin of the first page, write “Withdrawn.” In the right margin of the first page: Have an authorized person sign and date it. Write their name and title next to their signature. Fax the signed copy of your return using your computer or mobile device to the IRS’s ERC claim withdrawal fax line at 855-738-7609. This is your withdrawal request. Keep your copy with your tax records. Note: This fax line is only for ERC claim withdrawals. The IRS will not process other documents sent to this fax line. If you can’t fax your withdrawal request, you can mail it to the address in the instructions for the adjusted return that applies to your business or organization. Before you send it, make a copy of the signed and dated first page to keep for your records. It will take longer for the IRS to receive your request if you mail it. Track your package to confirm delivery. Sample claim withdrawal request Section B: You haven’t received a refund and you’ve been notified your claim is under audit If you’ve been notified that the IRS is auditing the adjusted return that includes your ERC claim, prepare your withdrawal request using the steps in Section A, but don’t submit to the withdrawal fax line or mail it using the address below. Instead: If you’ve been assigned an examiner, communicate with your examiner about how to submit your withdrawal request directly to them. If you haven’t been assigned an examiner, respond to your audit notice with your withdrawal request, using the instructions in the notice for responding. Section C: You received a refund check but haven’t cashed or deposited it Prepare the claim withdrawal request using the steps in Section A, but don’t fax the request. Write "Void" in the endorsement section on the back of the refund check. Include a note that says, "ERC Withdrawal" and briefly explain the reason for returning the refund check. Make copies for your tax records of the front and back of the voided check, the explanation notes and the signed and dated withdrawal request page. Don't staple, bend or paper clip the voided check; include it with your claim withdrawal request and mail it to the IRS at: Cincinnati Refund Inquiry Unit PO Box 145500 Mail Stop 536G Cincinnati, OH 45250 Track your package to confirm delivery. What happens next The IRS will send you a letter telling you whether your withdrawal request was accepted or rejected. Your approved request is not effective until you have your acceptance letter from the IRS. If your withdrawal is accepted, you may need to amend your income tax return. See Claiming the ERC for explanation of how ERC affects your income tax return. If you need help, seek out a trusted tax professional. Resources IRS announces withdrawal process for Employee Retention Credit claims; special initiative aimed at helping businesses concerned about an ineligible claim amid aggressive marketing, scams Employee Retention Credit Eligibility Checklist: Help understanding this complex credit Frequently asked questions about the Employee Retention Credit, including eligibility and the withdrawal process
