The IRS has put a moratorium (pause) on all new applications for Employee Retention Credit (ERC) refunds as of September 14th.
In an effort to protect taxpayers and to offer fail-safe measures to employers who have submitted ERC applications, the IRS has temporarily stopped the processing of new ERC refund applications. Furthermore, the IRS has announced that it is reviewing the ERC process to reduce instances of fraudulent claims.
The IRS has said in a communication from September 14th, that the moratorium is supposed to be lifted on January 1st 2024. This timeline could be lengthened, but the IRS has not published anything about that yet.
Yes. The IRS hasn’t stopped the program, only paused the processing of new applications. In conversations with EmployerIncentives, the IRS has commented that they will scan in new applications and hold them in a queue, and then process them in the order received once the moratorium has been lifted.
The IRS will continue to process applications for ERC submitted prior to the moratorium, albeit at a slower pace. Anticipate applications in process taking 180 days to complete.
EmployerIncentives will not change the scope of service as a result of the moratorium, and will continue to calculate refunds, complete the worksheets and 941-Xs for ERC amendments, and send out signature ready 941-X refund packages the way we always have. You can still submit them, and the IRS will continue to scan them in and queue them for processing. Your amendments will wait, queued at the IRS until at least January 1st 2024, at which time they will be processed in the order in which they were received. The process from January 1st is estimated to take 180 days at minimum.
Yes. EmployerIncentives is still processing Employee Retention Credit amendments, and is still working closely with the IRS to bring those amendments to resolution. Every indication that the IRS has provided has said that new applications will still be processed, though it is a good idea to file your amendments before the January 1st 2024 moratorium ends. It may be speculation at this point, but if Congress wanted to stop the ERC program altogether, they would most likely “grandfather in” applications that were already submitted.
Select a partner who has experience. For example, EmployerIncentives has been helping businesses leverage tax credit programs for over 20 years, and we’ll be around long after this program ends.
There are businesses out there who are looking to make fast money with ERC and who don’t plan to be responsible for any consequences when the IRS rejects the claims and makes a business pay the refund back. Be concerned if you receive 941-X forms that aren’t signed by the preparer, and that don’t have PTIN numbers on the back.
Make sure your partner doesn’t “guarantee maximum refunds” or “the largest refund possible.” You should receive the correct amount of refunds for your business.
You are never “guaranteed to qualify.” Your business must qualify based on IRS rules and guidelines, and many businesses don’t meet the criteria. An ERC partner should encourage you to be certain of your qualification, and to refer you to the IRS guidance and regulations directly. Only rely on trusted tax professionals to guide you, and don’t sign agreements for the program before you fully understand your qualification (Keep supporting documentation for qualification (writs, mandates, etc) for at least 10 years).
The IRS will continue to update the ERC program, and EmployerIncentives will forward those updates along. Please be on the lookout for new information from EmployerIncentives as it is updated.