By Christopher Migliaccio, JD, Partner and the PKF O’Connor Davies Employee Retention Credit Team
On Thursday, September 14th, 2023, the IRS indicated major changes to its processing of the Employee Retention Credit (ERC) effective immediately. In IR-2023-169, the IRS announced that it will stop processing new amended payroll tax returns with ERC claims until “at least” the beginning of 2024 and slow the processing of claims currently in process.
The IRS also promised new programs for taxpayers to withdraw unprocessed claims or settle previously processed claims that the taxpayer now believes were made in error. It also reiterated prior stern warnings about the use of ERC “mills” promoting qualification for businesses at odds with IRS eligibility guidance.
Read on for more details of this significant ERC news.