Are you a small business owner who has been waiting for months to receive the employee retention credit (ERC) you are eligible for? You’re not alone. According to the national taxpayer advocate, there is a backlog of approximately 1.4 million pandemic-era small business tax credit claims, causing long delays and uncertainty for taxpayers.
The ERC was enacted to support small businesses during the Covid-19 pandemic, providing thousands of dollars per eligible employee. However, after a surge of questionable claims, the IRS halted processing new filings in September, leaving many legitimate claims unaddressed.
National Taxpayer Advocate Erin Collins emphasized the importance of transparency from the IRS regarding the processing of ERC claims. With nearly 666,000 unworked claims before the moratorium and 85% of pending claims over 120 days old, the IRS is facing pressure to address the backlog promptly.
Collins is working with IRS leadership to accelerate the processing of eligible ERC claims, including thousands of pending cases with the Taxpayer Advocate Service. The goal is to ensure that businesses receive the credits they are entitled to without further delays.
As the IRS works through the backlog, they are prioritizing lower-risk filings and denying “improper” ERC claims to protect taxpayers against fraudulent payouts. The process may be complex, but it is crucial to prevent improper payments and ensure that funds are distributed to those who truly need them.
At Extreme Investor Network, we understand the importance of maximizing your tax credits and staying informed about the latest developments in personal finance. Stay tuned for more insights and tips to help you navigate the world of finance and investments.