Sep 15, 2023 IRS Ceases Processing of New Employment Retention Credit Claims
An Internal Revenue Service news release announced that the IRS would halt processing new Employee Retention Credits (ERC). The moratorium, beginning September 14, 2023, is expected to run through at least the end of the year. The news report stated that the IRS will “continue to work previously filed Employee Retention Credit (ERC) claims received prior to the moratorium but renewed a reminder that increased fraud concerns means processing times will be longer.”
For those who have already filed ERC claims, the news release further provides:
For those considering the ERC, the news release quoted IRS Commissioner Danny Werfel, who stated:
The ERC was made available during the COVID-19 pandemic to encourage businesses to retain workers by offering a refundable tax credit against certain employment taxes equal to a certain percentage of the qualified wages (including allocable qualified health expenses) that an eligible employer paid to employees after March 12, 2020, and before October 1, 2021 (before January 1, 2022, for recovery start-up businesses).
Employers for both for-profit and tax-exempt organizations are eligible if they experience either:
- A full or partial suspension of business operations due to COVID-19 pandemic governmental orders.
- A significant decline in gross revenue, as defined by a 50% revenue decline in 2020 or a 20% decline in 2021 when compared to 2019.
To claim the credit, a formal ERC tax study is required. ICS has successfully claimed the ERC for numerous firms in varying industries. Our comprehensive ERC studies include audit support and are performed with the utmost care by a team of CPAs and attorneys. Let us partner with you and determine your eligibility. » ERC Consultation