I Filed for My ERC Tax Credit and I’m Still Waiting
If you filed an Employee Retention Credit (ERC) claim and are still waiting for your refund in 2025, you are experiencing a common situation that many business owners who claimed the credit are currently facing. The IRS heightened its review of ERC claims due to concerns about fraudulent filings.
Our ERC compliance attorneys can meticulously examine your application, regardless of who initially prepared it, to ensure its accuracy and compliance with IRS regulations and guidance.
What Happens If You Filed for the ERC Tax Credit and Are Still Awaiting a Refund?
Even as the backlog is being addressed, the IRS is continuing to carefully evaluate claims, particularly those filed more recently or those deemed potentially high-risk. Even if your claim is valid, it might be subject to audit or a request for additional documentation. A tax resolution attorney can help you understand the nuances of the ERC program, interpret IRS correspondence (like disallowance letters), and guide you through the proper channels for inquiry or appeal.
If your ERC claim is denied, an attorney can help you craft a thorough and persuasive response to the IRS. You typically have two years from the date the IRS disallows a claim (for example, with a Letter 105-C) to file a lawsuit or get the refund issued. Requesting an appeal does not extend this time.
If the IRS has significantly delayed processing your claim (typically after six months of no response), or you disagree with a disallowance, your attorney can advise you on whether filing a lawsuit in federal court (such as the Court of Federal Claims or a federal district court) might be an appropriate strategy to compel the IRS to take action. If the IRS opens an audit or inquires about your ERC claim, we can represent your interests, help you prepare for the audit, and ensure you comply with all IRS requirements.
Understanding Recent Changes to the ERC
The recently enacted One Big Beautiful Bill Act (OBBBA) has brought several key changes affecting the ERC:
- ERC claims for Q3 and Q4 2021 filed after January 31, 2024, are retroactively disallowed. The general deadlines for filing ERC claims used to be April 15, 2024, for the 2020 tax year and April 15, 2025, for the 2021 tax year.
- The IRS’s statute of limitations for assessing ERC claims related to Q3 and Q4 2021 is extended from five to six years. This provides the IRS until April 15, 2028, or six years from the claim filing date, whichever is later, to audit and potentially disallow these claims.
- The existing 20% penalty for erroneous refund claims is expanded to include employment tax refunds like the ERC.
- Taxpayers with disallowed ERC claims for Q3 and Q4 2021 have an extended period to amend their income tax returns to claim a wage deduction.
These changes have significant implications for taxpayers, especially those with pending or recently filed ERC claims for Q3 and Q4 2021. It is crucial for affected businesses to consult with a qualified attorney to get more information about the legal options available.
Contact Us If You Filed for Your ERC Tax Credit and Have Not Yet Gotten a Response
A lawyer can be a valuable resource when you are facing delays in receiving your ERC tax credit refund from the IRS. The agency is scrutinizing ERC claims closely to ensure compliance and proper documentation. We can review your claim and ensure it is accurate and well-supported, minimizing the risk of audit or further delays.
Not only do we assist clients across the state of Arizona, but we are one of the few firms in the U.S. that can handle anybody’s ERC refund action throughout the country. Contact us today to schedule your free case consultation.
