What Factors Influence the ERTC Turnaround Time?

July 20, 2023
Dayes Law Firm

During the COVID-19 pandemic, many business owners struggled to keep their companies running. The government introduced the Employee Retention Tax Credit (ERTC) — also known as the Employee Retention Credit (ERC) — to provide qualified employers with financial assistance.

Many business owners filed this claim with the hope that they’d soon see their refund checks, only to find themselves waiting with no end in sight. The ERTC turnaround time can extend for weeks or even months — but what has caused the delay?

How Long Before You Can Expect To See Your Return?

When the process began, claims generally took only four to six weeks to complete. That timeframe lengthened, however, as the program went on.

In addition to mounting delays, the length of time depends on your business details, the IRS’s ability to examine your claim, and other related factors.

Factors Affecting Turnaround Times

Many business owners may find themselves worrying about the ERTC turnaround time. While some may see their refund checks within the expected timeframe, others may wait months without seeing anything.

Several factors affect turnaround times, meaning you might have to wait much longer to see financial aid.

1. The Number of People Filing

The ERC is a broad program, and countless business owners want to take advantage of it. This has partially contributed to the long turnaround times. The more employers who file, the more forms the IRS has to sort through — and the longer it may take to process your claim.

2. Processing the Forms

To claim the ERC, you must fill out Form 941-X. This form allows you to amend previously submitted tax forms to claim your credit. You can imagine how many businesses that previously thought themselves ineligible are now reconsidering.

However, Form 941-X is a paper form. Unlike electronic filing forms, trained staff must carefully look over paper ones. This can lengthen the turnaround process considerably. It also opens up more room for error, which could extend your wait time further.

3. Staff Shortages

The IRS relies on qualified staff members to expedite the turnaround process. Unfortunately, they’ve struggled to find the right individuals to fill empty positions. This means there are fewer staff members to look over the forms, which can slow down the turnaround process.

How Do You Check Your Refund Status?

While some delays may be understandable, as a business owner, you may rely on this credit to help support your business.

If you’re anxious to check your refund status, you can either call the IRS or visit their website. Expect a long wait time, but don’t let that deter you. Have your employer identification number, Social Security number, and tax information ready.

The IRS will take your information to check on your refund status. They should send you a report within four weeks notifying you about your claim.

Dayes Law Firm PC Can Help You Understand Your Return

The lengthy ERTC turnaround time can sometimes leave business owners feeling worried. If you’re still waiting for your refund check, or if you’d like additional information about the ERC, reach out to Dayes Law Firm PC. We’ll take the time to explain factors affecting the ERTC turnaround time, help you gather information for the IRS, and ensure everything is in order when you file.

Request help with your ERC claim. If you want to learn more, call (866) 257-1223 or fill out our contact form. We can provide you with a free consultation.