IRS Releases Update on Employee Retention Tax Credit (ERTC) Claims

September 6, 2024 Last Edit: March 19, 2026

IRS Releases Update on Employee Retention Tax Credit (ERTC) Claims

In the wake of the September 2023 moratorium on Employee Retention Credit (ERTC) claims, thousands of applicants are left wondering where their claims stand. This pause was introduced as the IRS sought to manage the overwhelming number of submissions, address concerns over improper claims, and ensure compliance with the law. Business owners who applied before the moratorium have seen a slow and steady process, but many are still awaiting decisions on their claims. As of August 2024, the IRS has made some progress in reviewing these claims. The agency identified 50,000 legitimate claims that are now being processed. Meanwhile, approximately 28,000 businesses have received disallowance notices, after being flagged as high-risk for fraud or errors. Additionally, IRS vigilance continues, with audits and investigations into fraudulent claims ramping up. The IRS is continuing to process claims while this unfolds. While this progress offers some relief, many businesses are still facing uncertainty. For those whose claims have been disallowed, the IRS is offering opportunities to appeal, but further delays are likely as the agency sorts through a large volume of cases. For business owners looking to track the status of their claims, there are options available. One route is to contact the Taxpayer Advocate Service, which assists with delays or issues involving the IRS. Another is reaching out to your representatives in Congress, as many have staff dedicated to helping constituents with federal agency matters. Both resources can provide additional guidance and may potentially expedite the resolution of lingering ERTC claims. While progress is being made, the road to resolving these claims is still long. Businesses waiting for updates on their ERTC claims should remain patient but proactive, exploring every available resource to stay informed. If you have any additional question on ERTC claims, you can email info@nfib.org or you can read more on the IRS’s latest announcement on ERTC.

Topics:

Taxes

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