The Latest on Employee Retention Tax Credits – And Why the IRS Hasn’t Processed (or Even Contacted You) About Your Claim

The Latest on Employee Retention Tax Credits – And Why the IRS Hasn’t Processed (or Even Contacted You) About Your Claim

June 19, 2024

On September 14, 2023, amid concerns about aggressive ERC marketing, the IRS announced a moratorium on processing new claims. 

When will the IRS resume processing claims?

A specific resumption date has not been determined but the IRS anticipates it will be sometime this summer or fall. If you filed for the ERC after September 14, 2023, that’s the reason your claim hasn’t been processed or you may not have even gotten an acknowledgement. The IRS’s primary focus is on clawing back erroneous ERC payments. So far, the IRS has reclaimed $1 billion. The investigations are intensifying, and the IRS says it has an additional $3 billion in its sights. The IRS continues to process ERC claims submitted before the moratorium, but with more scrutiny and at a much slower rate. Be patient.

Can I withdraw my claim?

If you’d like to withdraw your claim, there are a couple ways to do it. The first is the ERC Voluntary Disclosure Program (VDP). This was suspended in late March but may be reopened. It allowed non-qualifying ERC recipients to keep 20% of their payment in exchange for ratting out their shady promoters. The other option is that the IRS has an ongoing claim withdrawal process for those with (1) unprocessed claims, or (2) processed claims where the taxpayer received an ERC check but didn’t cash it. Instructions for requesting an ERC claim withdrawal are found here: https://www.irs.gov/newsroom/withdraw-an-employee-retention-credit-erc-claim. We suggest working with the firm that filed your original ERC claim.

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