Is Your ERC Refund MIA? Stay In the Know About Your Employee Retention Credit Claim

28 May 2024

As a business owner, there is no denying the buzz that has surrounded the Employee Retention Tax Credit (“ERTC” or “ERC”). Most of the negative press relating to the ERC resulted from opportunistic third-party vendors commonly referred to as  “ERC Mills” that persuaded businesses owners to file improper and oftentimes fraudulent ERC claims. As the saying goes, ‘this is why we can’t have nice things’.

The overwhelming number of claims coming in daily through these "ERC Mills" created a heavy burden on the IRS. To separate fraudulent and ineligible claims from those filed by eligible business owners, the IRS made several changes to their process for administering the ERC program.

In September 2023, the IRS announced a moratorium, which froze the processing of newly received ERC claims. The IRS also indicated that it would begin auditing and taking action against both taxpayers and certain ERC service providers, referred to as "promoters," who are suspected of submitting questionable or fraudulent claims.

Nerd Alert: Since the inception of the ERC, the IRS has paid out approximately 3.6 million claims totaling over $230 billion in credits. Currently, the IRS has an inventory of 1.5 million unprocessed claims estimated to be worth at least $100 billion. Due to the pervasive, aggressive, and inaccurate marketing tactics of ERC Mills, the scale of this relief program is unprecedented and deserves the attention and scrutiny of the IRS.

In light of these developments, businesses that have claimed the ERC and either received refunds or are still waiting on refunds need more information to assess their own risk and gain insight into the current status of their filing with the IRS. In other words, there still remains a good deal of uncertainty relating to the ERC. However, there is a game-changer on the horizon: TaxNow.

TaxNow is ready to redefine tax management, offering both businesses and individuals unparalleled real-time monitoring of their tax data. With our dynamic alerts and invaluable insights at your fingertips, TaxNow ensures that you’re always in the know. Say 'goodbye' to uncertainty and 'hello' to confidence with TaxNow’s innovative platform, empowering businesses to navigate their ERC claims with assurance and clarity.

TaxNow Gets You The Answer You Deserve

If your company is one of the estimated 1.5 million businesses that have filed an ERC claim and have not received a response from the IRS, you may be wondering the following:

  1. Did the IRS even receive my 941X?  As Forms 941-X may only be submitted in paper form, it can be difficult to track whether the IRS received a company’s submission.  
  2. What is the current status of my claim? Assuming the Forms 941-X were received, companies are likely unsure of the process.  Has the IRS actually started reviewing my claim?
  3. When can I expect to receive my refund?  Has the IRS cut a check? Where are they sending it?
  4. Is the IRS considering an audit of my claim?  As the IRS indicated in its September 14th announcement, a percentage of ERC claims will ultimately come under audit/examination.  How will I know if it is time to prepare for an audit?  

These are all valid and important questions that need answers.  That is why TaxNow provides a comprehensive solution to these unanswered questions,  giving you a bit more control. Leveraging data from the IRS, TaxNow users can quickly investigate whether the IRS received a 941X, when it began processing, and whether a refund check has been approved and/or issued.

Users will be able to subscribe to alerts that will notify them when the IRS takes specific actions related to ERC claims - keeping them in the know. We know that businesses who received their refund may be concerned about potential audits. Through TaxNow’s API, users will be able to receive an alert if the IRS is considering an examination, helping them stay informed and prepared.

TaxNow real-time access provides its users with IRS transcript data in a user-friendly, searchable, and intuitive format, allowing them to quickly navigate and investigate their tax records. After all, you shouldn’t have to be a CPA to know the ins and outs of your tax data!  

Okay, so how do I start using TaxNow?

The good news: it's as easy as 1-2-3 to sign up for TaxNow+.  To learn more about how TaxNow can help your company navigate the Employee Retention Credit and more, sign up for your TaxNow+ account today!

Join our Mailing List
No spam. Just the latest releases and tips, interesting articles, and more in your inbox.
Read about our privacy policy.
Thank you! Your submission has been received!
Oops! Something went wrong while submitting the form.