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:
- PreviouslyOnly processed claims filed on or before September 13, 2023.
- NowJudiciously processing claims filed between September 14, 2023 – January 31, 2024.
- Not yet addressedClaims filed from February 1, 2024 onward.
Key points from the announcement
- 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.