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ERC - Not as Easy to Receive as You Were Led to Believe
ERC - Not as Easy to Receive as You Were Led to Believe
The Employee Retention Credit (ERC) was introduced to provide vital support to businesses during the COVID-19 pandemic. Unfortunately, this program came to a standstill in September of 2023 when the IRS imposed a moratorium on ERC claims. Since then, the IRS has disallowed thousands of ERC claims and left many more business owners wondering if they will ever receive their funds.
My ERC claim was disallowed by the IRS is there anything I can do?
My ERC claim was disallowed by the IRS is there anything I can do?
The best course of action depends on the type of disallowance. Generally, your options are to appeal to the IRS independent office of appeals or the US Court of Federal Claims.
How long will an appeal take?
How long will an appeal take?
IRS appeals can be time-consuming, often taking six months or more before an appeals officer is assigned. In contrast, filing a suit with the U.S. Court of Federal Claims is typically a faster process, with our office consistently achieving results within 60 days.
How much does it cost to appeal an ERC disallowance?
How much does it cost to appeal an ERC disallowance?
Our firm offers varying hourly rate engagements, as well as flat fee and contingency options. Please contact us to get a quote of what our representation will cost for your case.
I received an IRS notice that I did not have enough employees to claim the amount of ERC that I did.
I received an IRS notice that I did not have enough employees to claim the amount of ERC that I did.
A common reason for Employee Retention Credit (ERC) claims being disallowed is the IRS's reliance on the number of employees reported on Line 1 of Form 941. This line reflects the number of employees who received wages, tips, or other compensation during the pay period that includes the 12th day of the third month of the quarter—March 12 for Q1, June 12 for Q2, September 12 for Q3, and December 12 for Q4. Consequently, employees who were terminated before these dates but received wages during the quarter are not counted, potentially leading to an underreporting of eligible employees for ERC purposes.
Can I still claim the ERC?
Can I still claim the ERC?
No, the deadline to file ERC claims passed on April 15, 2025.
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