ERC update: August 2024 Employee Retention Credit Update

Recently, the IRS provided another update regarding Employee Retention Credit claims. Here are the highlights:

Processing Speeds

The IRS is moving approximately 50,000 ERC claims deemed to be low risk into processing. After processing is completed, the claims will be paid out quickly beginning in September with additional payments going out in the subsequent weeks. The IRS foresees adding another large block of low risk claims for processing and payment later this fall.

Moratorium Update

Previously, the IRS had placed a moratorium on new ERC claims placed after September 14, 2023. They are now moving forward and will begin to judiciously process claims filed between September 14, 2023, and January 31, 2024. The IRS will continue to focus on the highest and lowest risk claims first, to form a sound basis to pay or deny a refund claim.

The IRS will send out another update in the coming weeks and encourages any taxpayers with outstanding claims to review them with their tax professionals to see if they are still eligible to claim the ERC. The IRS has added five new warning signs to the seven other red flags about potential improper claims. If you find you are ineligible, please use the IRS’s claim withdrawal process, linked below, to avoid any possibility of interest and penalties.

IRS Moves Forward with ERC Claims and Adds New Warning Signs, IRS Warning Signs of Incorrect Claims for ERC, IRS ERC Withdrawal Program

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