IRS Announces an Immediate Moratorium on Processing New ERTC Claims

“The IRS announced on September 14 an immediate moratorium on the processing of new employee retention tax credit (ERTC or ERC) claims through at least the end of 2023. In addition, the IRS issued a second announcement renewing its warning to taxpayers about “aggressive promoters” – ERTC mills – misleading employers into making improper ERTC claims.

Davis and Harman have prepared a one-page summary of these announcements, which can be found here.

We put out a press release today and released the following statement from Pat yesterday:

“Over the past year, we’ve stood shoulder-to-shoulder with the IRS warning our members and their small business clients of the perils of ERTC mills. This is a step in the right direction for small businesses that have waited months, or in some cases, years, for their deserved ERTC monies,” said Pat Cleary, president and CEO of the National Association of Professional Employer Organizations. “We hope the IRS can expeditiously clear the backlog of legitimate ERTC claims, so that the thousands of small businesses still waiting can get the money they are entitled to.”

It was picked up by Marketwatch, and our communications team continues its outreach to other media outlets covering this issue.

We are cautiously optimistic about this action by the IRS. For PEOs with older outstanding ERTC claims, the announcements by the IRS are verification that they have been delaying the processing of these claims. Also, the IRS provided clarity on those remaining PEO amended tax returns that have yet to be processed. This is the first time that the IRS has provided a status update on the amount of time it will take to process outstanding ERTC filings.

Our focus and messaging remain on getting the 17,000 outstanding ERTC claims made by PEO clients quickly processed. Through it all, NAPEO has been the #1 advocate for small businesses with unpaid ERTC claims. We were the lone small business voice at the Ways & Means Committee hearing in July. Thanks to your grassroots efforts, there is progress – not as fast as we would like, but progress nonetheless. We will continue to keep you updated.”

Thom Stohler
Vice President, Federal Government Affairs
NAPEO

*This article came from NAPEO Federal Government Affairs

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