Employee Retention Tax Credit Processing Moves Forward
(Aug. 13, 2024) Some providers waiting for federal Employee Retention Credit (ERC) payments may have their patience rewarded in the Fall. In an Aug. 8th press release, the Internal Revenue Service (IRS) announced that it recently issued 28,000 disallowance letters for suspect claims and is now working to pay 50,000 claims deemed to be valid. Those payments will begin in September and are expected to take several weeks. In addition, the agency will begin processing claims submitted between Sept.,14, 2023 and Jan. 31, 2024. The initial moratorium had halted processing any new claims filed as of Sept. 14th, 2023.
However, that still leaves more than a million claims with an estimated value exceeding $100 billion for the IRS to process. While the IRS believes that 90 percent of “high risk” claims that were disallowed were appropriately disallowed, in those cases where claims can be proven to have been improperly denied, the agency indicated that it will work with taxpayers to get it right. In addition, those receiving a denial of an ERC claim have the option to file an administrative appeal by responding back to the address on the denial letter. IRS.gov has additional information on administrative appeals with the IRS independent Office of Appeals.
The IRS reported that it had initiated 460 criminal cases implicating potential fraud of nearly $7 billion, that 7,300 claims had been withdrawn, and that the voluntary disclosure program for potentially invalid claims received 2,600 applications. The full press release is available here.
Contact: Darius Kirstein, dkirstein@leadingageny.org, 518-867-8841