Last week, the IRS announced a moratorium on the processing of new Employee Retention Credit (ERC) claims until 2024. This is primarily due to the increasing number of fraudulent claims being submitted by “ERC Mills” that are not properly filing claims. The main takeaways from this announcement are as follows:
- Previously submitted claims will be processed at a much slower pace during the moratorium, and the IRS may seek additional documentation when processing.
- Claims that are submitted during this moratorium will not be processed until 2024.
- The IRS is warning businesses to work with trusted tax professionals rather than just any promotor who will qualify your business.
Our understanding of this announcement is that it will delay the refunds for businesses that qualify, but companies that are entitled to the credit may still file during this period. We will continue to complete and submit the claims as we normally would, with the expectation that the claims will be filed upon the moratorium ending.
This announcement is not taking away the credit for valid claims, it is only increasing the wait time of processing and refunds.
If you would like to schedule a call to discuss your claim further, please reach out to our ERC Team at ERCTeam@pkfmueller.com.
