On September 14, 2023, the IRS issued a moratorium that put an immediate stop to processing new claims through the year’s end. This allowed the IRS to determine how to best safeguard their program against false claims. After a surge of false claims submitted to the IRS, they had to take a pause to combat future abuse of the program and protect businesses from predatory scams. Because of this pause, many applicants are wondering: where does my application stand? If you have already submitted to the IRS, there may be a concern that you will not be able to see your payout from the refundable tax credit. We took a deep dive into the IRS ERC pause to figure out everything you need to know about how it will affect your business.

New Claims Processing with the IRS ERC Pause

The IRS announced that they are currently not processing new claims. This does not mean that the ERC program has come to an end. This pause is merely for the IRS to determine how to best move forward in a way that combats false claims. It was a move that is meant to protect businesses when they begin accepting new claims once again. However, the deadline for the ERC tax credit has not moved. For new claims, this means there is less time than before to get your application submitted on time. New claims will only be accepting once the IRS determines that they can begin accepting once again.

I Already Submitted a Claim. Now What?

If you already submitted a claim to the IRS, you’re in luck. The IRS is still processing these claims. However, they did inform that delays could be even longer for them to process these claims. There is only a small team of IRS experts who process claims at the IRS. While processing current claims, they want to be stricter to crack down on false claims. If you applied with the help of a certified ERC consultant, you need not worry about the risk of an audit from the IRS. They are ERC experts who are qualified to help businesses submit applications to the IRS. If you are fully eligible when you applied, there is also no reason to worry. 

Delays for current claims processing could be even longer than 9 months. There is no deadline in which the IRS needs to process applications. Therefore, many businesses are heavily left in the dark on when they may receive their claim. If you are concerned about when your application is going to be processed, you can ask your questions to the IRS by calling or contact your certified ERC consultant to express your concerns.

Tips During the IRS ERC Pause

The ERC program is still alive. It is important to remember that the IRS has not shut down the program. They are still working through processing current claims. This may take even longer than expected, but it is best to be patient during the ERC pause and keep an eye out for any new updates from the IRS on the ERC program.

The best place to find the latest news on the ERC program is through the IRS website. The IRS posts news releases directly through their website to keep users updated.  Another way to stay updated is through asking your ERC specialist. They will be best informed on anything new that comes from the IRS in regard to your application, as well as the program itself.