On August 8, the IRS announced the agency will accelerate more payments and continue compliance work on employee retention credit (ERC) claims [IRS, IR-2024-203, 8-8-24].
The IRS will start processing claims filed between September 14, 2023, and January 31, 2024. Previously, the agency was not processing claims filed after the moratorium issued on September 14, 2023.
The IRS identified 50,000 “low-risk” ERC claims and will begin processing these payments. The IRS estimates payments will begin in September with more payments issued in subsequent weeks.
The IRS anticipates adding another large block of additional low-risk claims for processing and payment in the fall.
Disallowance Letters
The IRS mailed 28,000 disallowance letters to businesses whose ERC claims showed a high risk of being incorrect. The IRS said some early mailings inadvertently omitted a paragraph highlighting the process for filing an appeal to the IRS or district court, and the agency will ensure this language is mailed to relevant taxpayers. Businesses can file an administrative appeal by responding to the address on the denial letter even if the letter does not mention the appeal process.
To learn more about federal and state laws, regulations, and information to keep your company’s payroll operations in compliance, check out Payroll Source Plus!
Rayna Alexander, Esq., is Editor of Payroll Information Resources for PayrollOrg.
