IRS Processing of the Employee Retention Tax Credit (ERTC)

We have promising news regarding the processing of the Employee Retention Tax Credit (ERTC). After months of delays and frustration, the IRS is taking significant steps to speed up the handling of ERTC claims. 

Here’s what you need to know:

Faster Processing:

IRS Commissioner Danny Werfel has announced that the agency will now accelerate the pace at which ERTC claims are reviewed, both for approvals and denials. This comes after mounting pressure from the business community and lawmakers for the IRS to address the backlog. The IRS has begun processing and will issue payments for approximately 50,000 claims in September, with additional claims being handled in the fall. If your claim is still pending, you can expect progress soon.

Changes to the Moratorium:

The IRS is easing its nearly year-long pause on processing newer ERTC claims. Originally, the agency planned to halt processing claims filed after September 14, 2023. However, it will now consider claims filed up to January 31, 2024.

Mistaken Denials:

The IRS has acknowledged that some recent denials were made in error, affecting less than 10% of denied claims. The agency is committed to working with employers to correct these mistakes and ensure that eligible businesses receive their credits.

The IRS has indicated that the situation is beginning to improve, which is great news for businesses that have been waiting for this crucial financial relief. We’ll continue to monitor developments and keep you informed of any further updates. If you have questions about ERTC we encourage you to go directly to the IRS website where you’ll find details on eligibility and an FAQ.