The IRS has recently announced a significant change regarding the Employee Retention Credit (ERC), and we want to ensure you’re aware of its implications.
According to the IRS publication IR-2023-169, dated September 14, 2023, the IRS has imposed a moratorium on processing new ERC claims until at least December 31, 2023. This decision aims to protect honest small business owners from scams, address improper claims, and strengthen the program’s integrity.
What This Means for You
If you’ve already filed or plan to file an ERC claim, be prepared for extended processing times (up to 180 days or more) and increased compliance scrutiny. It’s crucial to navigate these challenges effectively.
Key points:
- For Those Yet to File: Review ERC guidelines before filing. Avoid tax promoters; consult a trusted tax professional. Use the new question-and-answer guide to confirm eligibility.
- For Those Who’ve Filed Already: Consult a tax professional to review program guidelines and the new Q&A guide. Withdraw erroneous claims if needed, even during an audit.
- Awaiting IRS ERC Settlement Program: Businesses with incorrect ERC payments can expect a settlement program in the fall. It offers penalty-free repayments. IRS is assessing solutions for promoter fee issues.
How We Can Assist You:
- Determining Eligibility: We’ll help you assess your eligibility, ensuring you meet all criteria for the ERC.
- Managing the Moratorium: We’ll guide you through potential delays and compliance issues.
- Optimizing Benefits: Our goal is to help you secure your rightful ERC benefits while avoiding improper claims.
To discuss how the IRS update affects your business and tailor a strategy to your needs, schedule an appointment with us here, and let’s talk.