It’s starting to feel like getting your ERC claim out of the processing backlog was supposed to be the finish line until you discover that Appeals may be where the real waiting begins, while the statute clock keeps running in the background.
This week, the more important development may be what is, or is not, happening inside the Independent Office of Appeals.
Based on recent practitioner experience, the IRS appears to have significantly slowed the scheduling of new ERC Appeals conferences and Post-Appeals Mediation proceedings. We are not aware of any publicly announced suspension, and some previously scheduled matters continue to move forward, but comparatively few new conferences appear to be reaching the calendar.
That apparent slowdown comes as a nationally leading firm in the ERC space, Frost Law, sent a letter to IRS CEO, Frank Bisignano, and National Taxpayer Advocate Erin Collins raising broader concerns about how ERC cases are being handled in Appeals. The letter argues that many risk-filter disallowances were issued without a substantive examination, leaving Appeals Officers with undeveloped files and effectively requiring Appeals to conduct a second-line examination rather than an independent review.
If Appeals is being forced to rebuild the factual record, that could help explain why taxpayers are seeing fewer new conferences scheduled and why disputed ERC cases may remain stuck in administrative limbo for much longer than expected.
Total Refunds: 94 (vs. 69 — up 25 / +36%)
Total Dollar Volume: $11.6M (vs. $6.6M — up $5.0M / +76%)
Average Refund: $123,672 (vs. $95,857 — up approximately $27.8K / +29%)
Average Days from Filing to Refund: 659 (vs. 942 — improved by 283 days)
Denials: 12 (vs. 5)
New Audits: 0 in June
The refund numbers look healthy, but the underlying story is less impressive. Most of this week’s refund activity came from older disputed cases finally reaching resolution. A large share involved resolved audits, while several Appeals matters also closed, including at least one partial settlement where the taxpayer recovered only a portion of the claimed credit.
Another noticeable portion of the refund activity came from reissued checks that had previously been lost, stolen, or returned undeliverable. In several cases, the ERC claim had already been approved months earlier, but the taxpayer did not actually receive the funds until the IRS canceled the original check and issued a replacement.
That means this week’s spike in refunds does not necessarily signal a wave of new approvals. It looks more like the IRS is clearing older disputes and fixing payment problems that were already in the system.
The bigger concern is what happens to the claims that are still waiting. An Appeals protest does not suspend the two-year period for filing a refund suit or obtaining an executed extension. Taxpayers can spend months waiting for a conference date while the statute clock continues to run in the background.
This week’s modest refund surge was driven mostly by resolved audits, closed Appeals cases, and reissued checks, not by a broad wave of new ERC approvals.
The more significant development is the apparent slowdown in scheduling new Appeals conferences. A claim can be out of Exam, sitting in Appeals, and still become legally endangered if the taxpayer assumes that “pending” means “protected.”
We hope Frost Law’s efforts help bring greater urgency, transparency, and accountability to the Appeals process. Taxpayers deserve a meaningful and independent review of their claims, not an indefinite holding pattern while critical deadlines continue to run. Until there is clearer direction from the IRS, however, practitioners should continue protecting refund-suit deadlines rather than assuming Appeals will resolve these cases in time.
Disclaimer: *𝘋𝘢𝘵𝘢 𝘴𝘦𝘵 𝘪𝘴 𝘧𝘳𝘰𝘮 𝘢𝘱𝘱𝘳𝘰𝘹𝘪𝘮𝘢𝘵𝘦𝘭𝘺 15,000 𝘣𝘶𝘴𝘪𝘯𝘦𝘴𝘴𝘦𝘴 𝘵𝘳𝘢𝘤𝘬𝘪𝘯𝘨 𝘌𝘙𝘊*
