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Hi, Esther. Quick update regarding the filing and processing of ERC claims per the IRS as of yesterday, 9/14/23:
"Amid rising concerns about a flood of improper Employee Retention Credit claims, the Internal Revenue Service today announced an immediate moratorium through at least the end of the year on processing new claims for the pandemic-era relief program to protect honest small business owners from scams.” The full moratorium is available on the IRS website at: https://www.irs.gov/newsroom/to-protect-taxpayers-from-scams-irs-orders-immediate-stop-to-new-employee-retention-credit-processing-amid-surge-of-questionable-claims-concerns-from-tax-pros
Unfortunately, there are companies out there who are pushing business owners to file when their eligibility is questionable or even outright fraudulent, as well as scammers who take deposits, retainers, etc. and skip town.
"Due to the large volumes and the need for compliance checks to protect against fraud, the IRS is unable to expedite individual claims. The IRS believes many of the applications currently filed are likely ineligible, and tax professionals note anecdotally that they are seeing instances where 95 percent or more of claims coming in recent months are ineligible as promoters continue to aggressively push people to apply regardless of the rules.”
Those who have filed will receive their payouts, but it will take a little bit longer.
“As part of the wider compliance effort, the IRS is working with the Justice Department to address fraud in the ERC program as well as promoters who have been ignoring the rules and pushing businesses to apply.”
New claims will be processed, but like payouts, it will take longer to process so the IRS can properly review all claims to avoid any such fraud attempts.
“The IRS emphasizes that payouts for these claims will continue during the moratorium period but at a slower pace due to the detailed compliance reviews. With the stricter compliance reviews in place during this period, existing ERC claims will go from a standard processing goal of 90 days to 180 days – and much longer if the claim faces further review or audit. The IRS may also seek additional documentation from the taxpayer to ensure it is a legitimate claim.”
“This enhanced compliance review of existing claims submitted before the moratorium is critical to protect against fraud but also to protect the businesses from facing penalties or interest payments stemming from bad claims pushed by promoters…”
We do not agree with any such attempts to pressure a company who is not eligible and applaud this decision to identify and prosecute those who attempt to do so. This is an incredible program for businesses who are eligible, but unfortunately scammers have caused a reason for the IRS to slow processing down.
If you have any questions on your eligibility or these changes, please feel free to book an appointment by Clicking Here, Esther.
Sincerely, The HD Group 602-878-7696 | 
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