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CP320B notice: what it means and what to do
Got an IRS CP320B notice? Here is what it means, your deadline, what to check before you answer, and how to reply. Check your own letter free: it stays on your phone.
Check my CP320B notice freeWhat the IRS says this notice is about
You generally have two years from the date of the disallowance letter (for example, Letter 105-C) to file suit. Requesting an appeal does not extend this 2-year period.
If you do not file suit within the 2-year period, or do not enter into a written extension agreement before it expires the IRS cannot issue a refund or credit, even if Appeals later issues a favorable decision.
Form 907, Agreement to Extend the Time to Bring Suit PDF , is a written agreement between a taxpayer and the Internal Revenue Service that extends the 2-year period for filing suit to seek a refund or credit after a claim disallowance. The agreement must be signed by both parties before the 2-year period expires .
An executed agreement extends the time to file suit and will allow the IRS additional time to consider your claim disallowance and, if warranted, issue a refund or apply a credit.
What you need to do
If you responded to a disallowance notice for your Employee Retention Credit and are awaiting a reply, and there are less than 6 months remaining in the 2-year period to file suit, you may request an extension of time to file suit using this process.
You can protect your rights to bring suit or receive your refund or credit (if determined eligible) by following the steps detailed below:
To request an extension:
- Download Form 907, Agreement to Extend the Time to Bring Suit PDF
- Complete the entire form and sign it.
- Submit your documents using the Document Upload Tool
- Wait for the IRS to review and return a countersigned copy of the agreement. The extension is not valid until the IRS signs it .
If the 2-year deadline is quickly approaching, contact the phone number listed on your latest notice immediately.
Your deadline
Answer by the date printed on your notice. If there is no date, answer as soon as you can, and call the number on the notice if you need more time.
What to check before you answer
Is this letter really from the IRS?
The IRS writes first by mail. A real letter shows a notice or letter number, your name and part of your tax ID number. The IRS does not ask for payment by gift card, crypto or wire transfer. If in doubt, sign in to your IRS online account, where many notices are listed.
You may want to
To protect your right to pursue a refund, you must sign Form 907 with the IRS to extend the time to file suit, or file suit with the U.S. District Court that has jurisdiction or with the U.S. Court of Federal Claims before the 2-year period expires.
Common Issues delaying Form 907 review and approval
Failing to complete all required fields on Form 907 can result in a delay in processing or denial of extension agreement.
Ensure to fill out all required fields including:
- Taxpayer ID Number
- Taxpayer Name
- Address
- Expiration Date: May be up to 2 years from date of earliest expiration
Refund Credit Information
- Period Ended: Last day of the impacted quarter (e.g. 03/31/2021)
- Kind of Tax: Employment
- Amount of Tax: Amount of Refund Claim
- Date Notice of Disallowance Mailed or Waiver Files : Date on LTR105C or LTR106C
Ensure all appropriate signatures are included with the date signed. See FAQs for additional signature information.
Common questions
Who can sign Form 907?
If this agreement is for any year(s) you filed a joint return, both husband and wife must sign the original and copy of this form unless one, acting under a power of attorney, signs as agent for the other. The signatures must match the names as they appear on this form.
If you are an attorney or agent of the taxpayer(s), you may sign this agreement provided the action is specifically authorized by a power of attorney. You must include a copy of your Form 2848, Power of Attorney and Declaration of Representative with Line 5a completed to authorize signing of Form 907.
If you are acting as a fiduciary (such as executor, administrator, trustee, etc.) and you sign this agreement, also attach a completed Form 56, Notice Concerning Fiduciary Relationship, if you haven't already filed one.
If the taxpayer is a corporation, sign this agreement with the corporate name followed by the signature and title of the officer(s) authorized to sign.
Where do I find the date of my ERC disallowance?
The date of your ERC disallowance will be included on the disallowance letter (i.e., Letter 105-C or 106-C) you received from the IRS in response to your claim. The date is generally in the top right corner of the letter.
Helpful information
Understanding Letter 105-C, Disallowance of the Employee Retention Credit (ERC)
If you receive Letter 106-C about the Employee Retention Credit
Form 907, Agreement to Extend the Time to Bring Suit PDF
Get my response letter for CP320B notice