Navigating the Ongoing ERC Processing Delays: What You Need to Know

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Navigating the Ongoing ERC Processing Delays

As you well know by now, the IRS had previously issued a moratorium on processing ERC claims, with expectations that it would be lifted by April/May. Unfortunately, the moratorium still persists, resulting in ongoing delays in the processing of claims.

Here’s the latest on the state of affairs regarding the Employee Retention Tax Credit (ERC) and what it means for your claims.

Current Status of ERC Claims Processing

While we eagerly await the IRS to issue an updated statement, the reality is that the moratorium remains in place. This has caused significant delays in the processing of claims, along with an extensive backlog at the IRS. Despite the IRS’s efforts to process claims submitted before the moratorium, progress has been slow.

IRS Measures to Address Backlog

The IRS has implemented measures to tackle this backlog. They have allocated funds from the Inflation Reduction Act of 2022 to introduce new scanning technologies aimed at expediting processing times and identifying fraudulent claims early in the process. However, this focus on addressing fraudulent activity has contributed to the delays in processing legitimate claims.

Our Commitment to Your Claims

We want to assure you that we are actively monitoring the situation. The IRS updates all files weekly, and the team at Credit League reviews thousands of these updated client transcripts weekly to track updates and movement in the processing queue. We are dedicated to ensuring that your claims are handled with the utmost care and diligence.

We understand that recent news surrounding fraudulent activity may raise concerns. However, we want to emphasize that every ERC claim filed by the Credit League team was meticulously reviewed to ensure that all necessary compliance criteria were met. Your claims are of utmost importance to us, and we are confident in the work and eligibility of the claims we have submitted on your behalf.

What You Should Do

Should you receive any correspondence from the IRS regarding your ERC claim or tax years 2020 and 2021 in general, we kindly request that you notify us promptly. This will enable our team to coordinate with you effectively and ensure that your interests are represented accurately.

We’re Here to Support You

We are here to support you throughout this process. If you have any questions or concerns regarding your ERC claims, eligibility criteria, or any other matter, please do not hesitate to reach out to us. Your trust in Credit League is greatly valued, and we are committed to serving you effectively.

For a detailed overview and a comprehensive timeline of all updates so far, please refer to the graphic below.

Thank you for your understanding and patience as we navigate through these challenges together. Stay tuned for more updates as we continue to monitor the situation and advocate on your behalf.

ERC IRS Timeline as of June 2024

We are grateful for your continued trust and partnership. Together, we will navigate these delays and ensure the best possible outcome for your ERC claims.