IRS Pausing on Processing ERC Refund Claims

The employee retention tax credit (ERC) was created during COVID-19 to reward employers for continuing wages and other payments. The credit expired on September 30, 2021 (December 31 for startups), but the time limit for submitting refund claims is still open. Because of this, promoters of “ERC mills” have caused the submission of many illegitimate claims. The IRS announced a moratorium for processing new claims through the end of this year to have more time to examine submissions and ensure only legitimate claims are paid. The IRS is developing new initiatives to help businesses that were victims of aggressive promoters, so stay tuned! #IdeaoftheDay