CURRENT ERC FAQS

The Employee Retention Credit remains a viable tax credit for employers that were negatively affected by the economic downturn caused by the pandemic in 2020 and 2021. Unfortunately scams and fraud have become rampant in the program and the IRS had to put a moratorium (pause) on all new applications for Employee Retention Credit (ERC) refunds as of September 14th, 2023 so they could get a handle on all the fraud that was happening. They have since implemented new programs to help businesses that were victims of the scams and fraud.

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 said in a communication from September 14th, that the moratorium was supposed to be lifted on January 1, 2024.  This has come and gone, and the IRS has not provided any updates on when the moratorium will be lifted.

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).

While there is no way to expedite processing through the IRS, EmployerIncentives works with a partner who will purchase your refund.  For more details about this program, please contact .

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.

The IRS has provided 2 programs for correcting an improperly filed Employee Retention Credit claim. Your tax professional can help you either correct (amend) your claim or withdraw your claim entirely. Please see the IRS’s FAQ’s at https://www.irs.gov/coronavirus/frequently-asked-questions-about-the-employee-retention-credit#correcting

If you have already received payment for the ERC and are ineligible, you need to pay that back. The IRS has set up the Voluntary Disclosure Program where you voluntarily pay back 80% of what you received through ERC. This program is available through March 22, 2024. Please go here for more information: https://www.irs.gov/coronavirus/employee-retention-credit-voluntary-disclosure-program

See this blog post for more info: Get Out of Jail Free Until 03/22/2024

Unsolicited calls, direct mailings, wild statements and claims about receiving huge sums of money, and asking for large up front fees to claim the credit are signs that you are being scammed. Remember: the real IRS will never call or email you. They only communicate by mail. For more information about ERC scams, please go here: https://www.irs.gov/coronavirus/frequently-asked-questions-about-the-employee-retention-credit#scams