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ERC Claim

IRS Stops Processing New ERC Claims 

September 21, 2023

In a news release, the IRS issued a moratorium on the processing of any new Employee Retention Credit (ERC) claims through at least the end of the year, citing concerns that a growing number of new claims are potentially ineligible and stem from businesses being pressured by aggressive promoters and marketing. 

It is expected that the processing times for ERC claims that have already been submitted will take at least 18 months to complete. If more information is needed to verify a claim, the processing time could be even longer. Moreover, there is a possibility that these claims will face increased scrutiny, and businesses might have to provide extra supporting documents.

“The IRS is increasingly alarmed about honest small business owners being scammed by unscrupulous actors, and we could no longer tolerate growing evidence of questionable claims pouring in,” IRS Commissioner Danny Werfel said. “The further we get from the pandemic, the further we see the good intentions of this important program abused.”

In the release, the IRS urges taxpayers to review the IRS guidance for determining eligibility, visit the ERC FAQ page or new question and answer guide in addition to reaching out to a trusted tax advisor regarding eligibility for the ERC. Additionally, businesses that have filed a claim will soon have the option to withdraw that claim if they are unsure about their eligibility. 

Should you have any questions or concerns, please do not hesitate to contact us at (205) 271-5400.

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