The IRS is accelerating efforts to clear the massive backlog of Employee Retention Credit (ERC) claims, with 400,000 claims representing nearly $10 billion currently under review. This is great news for business owners who’ve been waiting for refunds, but the IRS has introduced several new processes and initiatives that could affect how you handle your claim moving forward.
IRS Simplifies ERC Process for Third-Party Payers
A key update in the IRS’s latest push involves the creation of a consolidated claim process for businesses that relied on third-party payers to file their ERC claims. This is a significant development, as businesses that used these services often encountered delays or errors in their filings due to complexities in how payroll information was reported.
If your business worked with a third-party payer to submit an ERC claim, you may now benefit from this streamlined process, which aims to speed up the resolution of pending claims. However, this also underscores the importance of reviewing your claim for any potential issues or inconsistencies that could delay your refund.
Voluntary Disclosure & Claim Withdrawal Programs
The IRS is urging businesses to take advantage of the second ERC Voluntary Disclosure Program (VDP), which runs through November 22, 2024. This program allows businesses to voluntarily correct inaccurate claims, avoid penalties and interest, and receive a 15% discount on repayment. It’s a crucial opportunity for businesses to resolve mistakes before the IRS initiates audits or compliance actions.
For businesses whose ERC claims haven’t been paid yet, the IRS also offers a claim withdrawal program. This option allows businesses to withdraw questionable claims before they’re processed, further reducing the risk of audits or penalties. Whether your claim errors stem from misunderstandings about ERC eligibility, misreported wages, or even aggressive marketing by third-party promoters, these programs allow mistakes to be corrected.
What This Means for You
The IRS’s recent updates reflect an urgency not just to process claims faster, but also to enforce ERC tax credit compliance more strictly. Business owners need to be vigilant about reviewing their claims. At Save My ERC, we specialize in working with businesses to review their claims, thoroughly auditing your submission for accuracy and compliance.
Schedule a meeting with us today, and let Save My ERC help you navigate this process. With $10 billion in ERC claims under review, ensuring your submission is flawless is essential.