Another day, another ERC update! The IRS has announced that it will begin processing more claims for the Employee Retention Credit (ERC). We have the details here.

Take a look at the numbers:

• The IRS has sent out 28,000 rejection letters to businesses whose claims proved to be incorrect in some way
• These rejections are estimated to prevent up to $5 billion in improper payments
• Thousands of audits are currently in progress
• 460 criminal cases have been brought forward (representing potentially approximately $7 billion in fraudulent claims)
• 50,000 valid, low-risk claims have been identified

What is the moratorium?

As we reported back in September 2023, effective September 14, 2023, the IRS mandated an immediate moratorium or halt on processing new ERC claims received through the end of 2023. The agency has not been working on claims that were submitted after that date.

What is the new moratorium?

Effective August 2024, the IRS has pushed the moratorium on processing new low-risk claims from September 14, 2023, to January 31, 2024. 50,000 low risk claims are set to be processed starting in September, with additional payments expected later in the fall.

Can you appeal a denied ERC claim? What is the process?

Yes, you can do so by responding to the denial letter or filing an appeal on the IRS website.

What is the ERC Voluntary Disclosure Program (VDP)?

If you believe you have filed in error, the VDP can help you avoid fines—check out our blog, IRS Reopens Voluntary Disclosure Program for False ERC Claims.

If you’re waiting on a legitimate ERC claim, expect progress in the coming months. We will keep you posted with updates as they come.