IRS Pauses Processing New ERC Claims, Plans Program for Businesses to Address Improper Claims

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Tax Notes

IRS Pauses Processing New ERC Claims, Plans Program for Businesses to Address Improper Claims

By Christopher Migliaccio, JD, Partner and the PKF O’Connor Davies Employee Retention Credit Team

On Thursday, September 14^th, 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.

Contact Us

PKF O’Connor Davies has helped hundreds of companies across a number of industries determine their ERC qualification, calculate their credit and help them file amended payroll tax returns.

If you have questions about the employee retention credit, contact your Client Service Partner or:

Christopher Migliaccio
Partner
ERC Services Leader
[email protected]
 

Michael Andriola, CPA, CFE, CCIFP, PSA
Partner
[email protected]
 

Michael F. Ganino, CPA, CFE
Partner
[email protected]

Kristin Anderson, CPA
Senior Manager
Exempt Organizations -Tax
[email protected]  
 

Elisha M Brestovansky, CPA, MBA
Senior Tax Manager
[email protected]
 

Jon P. Klerowski, CPA, ABV, CFE
Principal, Business Advisory Group
[email protected] 

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