IRS moves forward with Employee
Retention Credit claims
IR-2024-203, Aug. 8, 2024
The IRS has announced additional actions to help small businesses and improve the Employee Retention Credit (ERC) program. They are accelerating payments for legitimate claims while working to prevent improper payments. The agency has identified 50,000 valid ERC claims and is quickly moving them into the pipeline for payment processing in the coming weeks. These payments are part of a low-risk group of claims and are expected to begin in September, with additional payments going out in subsequent weeks.
For businesses that have received denials, the IRS emphasizes that administrative appeals options are available. They are taking steps to ensure all relevant taxpayers receive information about the appeal process. The agency has adjusted its moratorium on new claims:
- Previously: Only processed claims filed on or before September 13, 2023
- Now: Judiciously processing claims filed between September 14, 2023 – January 31, 2024
- Not yet addressed: Claims filed from February 1, 2024 onward
Key points from the announcement include:
- Accelerating Payments: 50,000 low-risk ERC claims are being fast-tracked, with payments expected to begin in September.
- Continuing Compliance Work: The IRS is intensifying audits and investigations into potential fraud and abuse.
- Disallowance Letters: 28,000 letters sent, potentially preventing up to $5 billion in improper payments.
- Processing Recent Claims: Processing will focus on the highest and lowest risk claims.
Read the full IRS announcement here.
If you are under audit for your ERC claim(s), or if you receive an ERC disallowance letter, email Azarvand Tax Law at Info@AzarvandTaxLaw.com or visit our dedicated ERC website, ERCAuditTaxAttorneys.com,
to book a complimentary 30-minute consultation.