The Internal Revenue Service (IRS) issued a press release yesterday announcing an immediate halt to the processing of new Employee Retention Credit (ERC) claims due to concerns about questionable claims and potential scams.
In the press release, the IRS has stated that this decision is aimed at protecting taxpayers from fraudulent activities and ensuring the integrity of the ERC program. The suspension of new processing will allow the IRS to review existing claims thoroughly and address any concerns raised by tax professionals.
What Does This Mean for You?
- Existing Claims: If you have already submitted an ERC claim, it will continue to be processed. There should be no impact on your existing application other than a potentially slower processing time (up to 180 days or longer).
- New Claims: If you were planning to file a new ERC claim, please be aware that the processing of new claims has been temporarily halted. The IRS has not provided a specific timeline for when this suspension will be lifted, so we recommend staying updated on IRS announcements for any further developments. At a minimum, the suspension will remain through the end of 2023.
- Be Vigilant: Given the concerns over questionable claims and scams, it’s essential to exercise caution and ensure that your ERC claims are accurate and compliant with IRS guidelines. Be wary of unsolicited calls and advertisements that encourage ERC application filings. Consulting with a tax professional or advisor may be beneficial in this regard.
- Stay Informed: Keep an eye on IRS updates and announcements to stay informed about when the processing of new ERC claims will resume. We will also continue to monitor the situation and keep you updated as more information becomes available.
At Lanigan Ryan, we are committed to helping our clients navigate the complexities of tax-related matters, including the Employee Retention Credit. If you have any questions or concerns about your ERC claim or how this IRS announcement may affect your business, please don’t hesitate to reach out to our team for guidance and assistance.
We understand that this news may raise questions and concerns, and we are here to support you throughout this process. Your compliance and peace of mind are our top priorities.
Read the full IRS Press Release here.