All posts by Tax Credit Updates
The IRS has announced preemptive denial of ERC claims for 20,000 taxpayers based on entities that did not exist prior to 2022 or pay wages.
A taxpayer whose ERC claim was denied by an IRS auditor has filed suit against the IRS and Treasury Department.
Unprocessed ERC claims at the end of November reached the highest number since the IRS began reporting the volume in 2021.
A new Financial Crimes Enforcement Network alert to financial institutions highlights fraud schemes related to the ERC.
ERC warnings from the IRS have caused employers to be skeptical of the credit. This review explores recent IRS statements on eligibility.
Learn more about the employee retention credit (ERC) withdrawal program from new guidance provided by the IRS during a recent webinar.
The IRS has published instructions for businesses to withdraw their ERC claims. Learn when ERC withdrawal may be the right course of action.
A late September report shows the number of unprocessed Forms 941-X is up from the beginning of the month, a good indicator of the current ERC backlog.
Explore the IRS's latest announcement regarding the ERC moratorium and changes to pandemic tax credits affecting taxpayers.
The IRS released two new guidance memos regarding the Employee Retention Credit. Employers wondering about their eligibility should review what they say.
There's a new set of FAQs from the IRS about the ERC, covering things such as eligibility, qualifications, ERC scams, timing and more.
The backlog of ERC claims at the IRS is still above 400,000. Recent legislation includes report language directing the IRS to address the backlog.
The IRS Office of Chief Counsel released a memo discussing the limitations of ERC eligibility related to a supply chain disruption.
The next installment of our ERC Fraud Watch includes details from IRS criminal investigations involving fake businesses and employees.
The IRS has increasingly labeled some ERC claims as fraud. It's important to recognize the signs of fraud to ensure your claim meets the right standards.
Max Shenker provides another update on the backlog of unprocessed ERC claims at the IRS, which has more than doubled since the beginning of 2023.
The IRS has reiterated warnings against improperly claiming the ERC, while the bureau also investigates fraud schemes including stolen ERC checks.
On March 23, 2023, fifteen Republican members of the House Ways and Means Committee sent a letter to the new IRS Commissioner, Daniel Werfel, expressing concern about chronic delays in the processing of employee retention tax credit (ERTC/ERC) claims. The letter asked for responses to six specific questions related to the ERC backlog: “1. What are the reasons contributing to the delay of ERTC claims being processed, and what if anything has the IRS done to address these challenges? “2. What is the average wait time between when employers filed their ERTC claim and when they receive a refund from the IRS? How has the average wait time changed over the last six months? “3. Are there any restrictions that the IRS is placing on who is eligible for ERTC credits aside from the eligibility requirements detailed above? If so, please detail those restrictions and why the IRS has implemented those restrictions. “4. Are employers able to track their ERTC refund status with the IRS? If so, explain the process by which employers can track their ERTC refund status. “5. When does the IRS anticipate completing the processing of all ERTC claims and issuing all necessary refunds? “6. What is the IRS doing to address potentially fraudulent ERTC claims from ERTC ‘mills’?” As we have reported in the past, the ERC backlog of unprocessed claims has been steadily growing since the fall of 2022. The most recent figure, as of March 29, 2023, is that the IRS has a backlog of 890,000 unprocessed Forms 941-X. It is unclear whether this rapid increase in unprocessed forms indicates that the IRS has paused its processing of forms, or that the volume of new forms has accelerated and outpaced their processing capacity. While the letter from the members of Congress requested responses from and a meeting with IRS by April 3, a source informed us that a meeting has yet to occur.