IRS Reports Progress on Processing $10 Billion in Employee Retention Credit Claims

The Internal Revenue Service (IRS) announced today that it has made continued progress in processing Employee Retention Credit (ERC) claims, with approximately 400,000 claims currently under review, totaling around $10 billion in eligible claims.

The IRS is actively working on these claims, many from small businesses, while handling a significant volume of submissions related to this complex pandemic-era credit. A large portion of the ERC claims were filed during a period of aggressive marketing by promoters, resulting in a high number of improper and ineligible submissions.

“The IRS recognizes the critical importance of Employee Retention Credit payments for struggling small businesses, and we are making steady progress on one of the most complex tax provisions we’ve ever managed,” said IRS Commissioner Danny Werfel. “We are working hard to process ERC claims as quickly as possible while preventing improper payments due to misleading marketing. In recent weeks, we’ve made significant headway in distinguishing eligible claims from the ineligible ones, and we continue to enhance our models to identify more eligible claims.”

Of the 400,000 claims being processed, the majority are expected to be approved. The total value of eligible claims amounts to about $10 billion. Checks for eligible claims are being mailed, with more to follow in the coming weeks and months.

Click here to read more.