Sep 19, 2023

IRS Halts Processing of New ERC Claims Until January 2024

In a news release yesterday, 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. 

 Processing times for ERC claims already submitted will likely take upwards of 18 months to process and could possibly be longer if additional information is needed to verify a claim. As we mentioned in an earlier email, there will be increased scrutiny for these claims and businesses may be required to provide additional supporting documentation.

 “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 that you would like to discuss regarding your business’ ERC claim, please do not hesitate to contact us or call our office at (833) CPA-BMSS.