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Update on IRS’s Backlog of Unprocessed ERC Claims
On March 23, 2023, a group of fifteen Republican members of the House Ways and Means Committee sent a letter to the new IRS Commissioner, Daniel Werfel, expressing their concern about the chronic delays in processing employee retention tax credit (ERC) claims. This letter requested information on various aspects of the delay and its impacts on businesses, but as of April 12, 2023, the meeting with the IRS has yet to occur.
Since late 2021, the only available method for filing an ERC claim with the IRS has been via
Form 941-X, the Adjusted Employer’s Quarterly Federal Tax Return or Claim for Refund. Unfortunately, this form can only be filed through mailing or faxing, and there is no option for filing electronically. This means that the IRS must manually review each form after processing the original Forms 941.
The backlog of unprocessed ERC claims has been
growing since the fall of 2022, and as of
April 5, 2023, the IRS has a backlog of approximately 929,000 unprocessed Forms 941-X. The reason for this rapid increase is uncertain, but the
IRS website indicates that trained staff at two sites (Cincinnati and Ogden) are working on the inventory of Forms 941-X.
The delay in processing ERC claims is a significant concern for eligible employers who rely on these refunds to help with their finances. It is frustrating to wait for months without any communication from the IRS on when to expect the funds. As a true profitability consultant, OnCentive understands this frustration and has developed a funding program in partnership with several financial institutions. This program bypasses the typical eight to nine-month wait from the IRS and provides immediate cash infusion to clients within weeks.
For more information on OnCentive’s funding program, please visit https://www.oncentive.com/covid-19-erc-funding.
The delay in processing ERC claims is a significant issue that needs to be addressed promptly. Eligible employers require timely refunds to help them navigate their finances and maintain their operations. The IRS needs to provide clarity on the reasons for the delay and a timeline for resolving the backlog.
In the meantime, solutions such as OnCentive's funding program can help ease the burden for businesses affected by the delay.
Have Questions or Need More Information?
What Clients Say About OnCentive:
Don't just take it from us.
Morgan Akins, The Arc of Tuscaloosa
"The OnCentive team helped our non-profit raise hourly wages to attract and retain employees through a very difficult labor market. The services we provide our clients are critical to the community. Thanks to OnCentive we are able to remain competitive as an employer. Their team is great to work with and without a doubt will help you maximize the amount your organization can recover.”
Tawny DeBolt, Neon HCM
"OnCentive has delivered millions of dollars in credits to our clients. We had them take a look at our business and they found over $100k in cash refunds for our company. Their staff treats every one of our clients like they are their own and our clients and ecstatic we made the introduction."
Cliff Morgan, CFO Concrete Guys
"OnCentive has exceeded our expectations. We were skeptical on whether or not these programs would work for us but they absolutely made us believers. I would highly recommend them to any business looking to increase its profitability.”
Led by Tax Attorneys,
CPAs & Credit Experts
Our leadership has over 150 years of combined tax experience. With $3 billion in incentives captured, you are in good hands with OnCentive.
Quality Guaranteed
In the unlikely event that your credit is ever contested, the OnCentive team will defend our work and will fully refund any credits that are disallowed.
Maximum Credit Yield
Our profitability is tied with yours. We work off success fees which means we are motivated to find the maximum credits your business can qualify for.
