Tax Law and News IRS stops ERC claims through Dec. 31, 2023 Read the Article Open Share Drawer Share this:Click to share on Twitter (Opens in new window)Click to share on Facebook (Opens in new window)Click to share on LinkedIn (Opens in new window) Written by Intuit Accountants Team Modified Sep 18, 2023 1 min read To protect honest small business owners from scams, and based on a rising concerns about a flood of improper Employee Retention Credit (ERC) claims, the IRS recently announced an immediate moratorium through at least the end of the year on processing new claims for the pandemic-era relief program. IRS Commissioner Danny Werfel ordered the immediate moratorium to run through at least Dec. 31. This follows growing concerns inside the IRS from tax professionals as well as media reports that a substantial share of new claims from the aging program are ineligible and increasingly putting businesses at financial risk by being pressured and scammed by aggressive promoters and marketing. The IRS continues to work previously filed ERC claims received prior to the moratorium, but renewed a reminder that increased fraud concerns means processing times will be longer. On July 26, 2023, the agency announced it was increasingly shifting its focus to review these claims for compliance concerns, including intensifying audit work and criminal investigations on promoters and businesses filing dubious claims. The IRS emphasizes that payouts for these claims will continue during the moratorium period, but at a slower pace due to the detailed compliance reviews. With the stricter compliance reviews in place during this period, existing ERC claims will go from a standard processing goal of 90 days to 180 days, and much longer, if the claim faces further review or audit. The IRS may also seek additional documentation from the taxpayer to ensure it is a legitimate claim. Previous Post Elegibilidad de titulares de ITIN para ser accionistas de sociedades… Next Post October 2023 tax and compliance deadlines Written by Intuit Accountants Team The Intuit® Accountants team provides ProConnect™ Tax, Lacerte® Tax, ProSeries® Tax, and add-on software and services to enable workflow for its customers. Visit us at https://proconnect.intuit.com, or follow us on Twitter @IntuitAccts. More from Intuit Accountants Team Comments are closed. Browse Related Articles Practice Management 3 ways to protect taxpayer data against cyberthieves Practice Management ProSeries® Tax spotlight: David Davis, CPA Advisory Services Mason Quist and his advisory practice Practice Management ProConnect™ Tax spotlight: Chris Picciurro, CPA/PFS Client Relationships Show your clients some love Tax Law and News Free downloadable tax resources for you and your clients Practice Management The strategic edge of niche specialization Tax Law and News Cambios y tendencias fiscales para 2025 Tax Law and News Tax changes and trends for 2025 Workflow tools Feature video: Intuit® ProConnect™ Tax check boxes