Despite the continued lull in ERC processing, there is much to rejoice over for both taxpayers who claimed ERC and the professionals who assisted them! Let’s jump right into it.
→ Big, Beautiful News: On Wednesday, June 11, the House officially passed a resolution to strike the ERC provisions in the “One Big Beautiful Bill” (OBBB) that would have otherwise retroactively terminated the ERC effective January 31, 2024, extended the statute of limitations by up to six years, as well imposed harsh ERC promoter regulations on a retroactive basis. For now, the entirety of these provisions has been removed from OBBB.
→ Big, Beautiful Billy: This week, the Senate officially confirmed the appointment of former Missouri Congressman and ERC advocate Billy Long as the new IRS Commissioner. Billy has expressed his strong desire to transform the IRS into a customer service-oriented organization, as well as to “take clues” from the private sector to advance the IRS modernization efforts. Three cheers for Billy!
Now back to refunds…
The IRS may not be throwing an ERC gala, but there is certainly an exclusive list of invitees who attended an ERC processing soirée over the past weekend. Refunds are moderately on the rise again, offering some relief, but the gross payout continues to shrink.
📈 Our data shows 421 refunds were processed this week, a solid jump from last week’s 380, reflecting an 11% bump in volume. That’s the highest weekly count we’ve seen so far this month, yet still a far cry from the 52-week high of over 1,400 refunds we saw five weeks ago.
📉 Average refund amount took another noticeable hit this week, sliding to $125,737 from $149,161. That’s the 4th consecutive weekly drop, suggesting that while slightly more claims are being processed, the checks are getting smaller.
📉 Yet another minor setback came through as the total dollar volume dipped slightly to $52.9M, down from $56.6M last week.
1. ERC Killer and Promoter Provisions Struck from OBBB - As reported by Tim Parrish, President of the HIRE Coalition and one of the country’s leading experts on ERC, the House successfully passed a resolution to strike the ERC section from the OBBB with the prevailing thesis that the provision would not pass muster due to the Byrd Rule. While there’s always a possibility that a standalone “ERC Killer” bill could be reintroduced in the future, businesses that filed for the ERC after January 31, 2024, can rest easy for now.
2. Billy Long Confirmed as New IRS Commissioner - On June 12, the Senate confirmed Billy Long as the next IRS Commissioner in a 53–44 party-line vote, securing leadership at an agency that’s faced high turnover and internal strain. Long, a former Republican congressman from Missouri, will serve through November 2027, completing the term of former Commissioner Danny Werfel. He emphasized restoring “common sense” and credibility to the IRS, pledging an open-door policy for agency staff. Long’s confirmation brings some much-needed stability to the IRS, which has cycled through four acting commissioners in as many months.
3. Former IRS Chief Daniel Werfel Joins Tax Credit Consultant Alliantgroup - Danny Werfel, who resigned earlier this year as IRS Commissioner, has joined the tax consulting firm Alliantgroup. The company, which specializes in securing tax credits and incentives, including the ERC, announced the hire through CEO Dhaval Jadav’s LinkedIn account. Werfel, a Biden appointee, oversaw the IRS’s aggressive crackdown on ERC filings, at one point promoting the widely disputed claim that 95% of ERC claims were fraudulent. His new role is drawing scrutiny within the tax professional community, especially given Alliantgroup’s deep involvement with ERC and the fact that the firm was subject to a controversial IRS raid in 2022, while Werfel was leading the agency.
4. Senate Republicans Target June 13 Release for Tax Bill Revisions Amid Tight Timeline - Senate Republicans plan to release their revised tax portion of the House-passed reconciliation bill by June 13, with the Senate Finance Committee expected to skip a markup and instead introduce a substitute amendment. The bill, which includes a $3.8 trillion tax package, would extend several tax provisions and roll back certain clean energy credits. Lawmakers aim to pass the legislation by early July to address the looming federal debt limit, but both chambers face a tight timeline with an August recess approaching. Senate Democrats are pushing for more transparency through a markup, while Republicans remain optimistic about meeting the deadlines.
Kenny's Conclusions
While ERC refund volume remains a shadow of its former self, this week delivered a double dose of good news for taxpayers and practitioners alike. With the House officially striking the ERC clawback provisions from the OBBB, and the Senate confirming Billy Long, a “common sense” advocate for the ERC, as the next IRS Commissioner, the tides are shifting in favor of stability and fairness.
Still, our TaxNow data shows that the processing pipeline remains sluggish, with refund amounts continuing to shrink even as weekly counts creep upward. Meanwhile, increased denial activity and a fresh wave of audit flags signal that scrutiny isn’t slowing down.
The message? The legislative clouds may be clearing, but ERC filers should stay alert, because while the bill may have a shiny name, the road ahead still demands diligence.
Signing off!
Kenny Dettman, CPA
Disclaimer: *𝘋𝘢𝘵𝘢 𝘴𝘦𝘵 𝘪𝘴 𝘧𝘳𝘰𝘮 𝘢𝘱𝘱𝘳𝘰𝘹𝘪𝘮𝘢𝘵𝘦𝘭𝘺 12,500 𝘣𝘶𝘴𝘪𝘯𝘦𝘴𝘴𝘦𝘴 𝘵𝘳𝘢𝘤𝘬𝘪𝘯𝘨 𝘌𝘙𝘊*
