Goldburd | Goldburd McCone LLP

For nationwide tax guidance, call:
212-235-1537 or toll-free at 866-712-9505.

Goldburd | Goldburd McCone LLP

For nationwide tax guidance, call: 212-302-9400 or toll-free at 844-653-2873.

Serving Individual And Corporate Tax Clients Nationwide From Our New York, New Jersey, Florida And California Offices

Steven Goldburd and Benjamin A Goldburd

Since 1983, our tax firm has skillfully represented individuals and corporations across the United States and around the globe from our offices in New York, New Jersey, California and Florida.

What should I do if I have not gotten my ERC refund?

On Behalf of | Oct 30, 2024 | Business Tax

The Internal Revenue Service (IRS) has been straightforward that receiving funds from the Employee Retention Credit (ERC) would take time, estimating a standard processing goal of 180 days and longer if a claim required additional review. Unfortunately, for many business owners, it is taking much longer than the estimated date to receive these much-needed funds. Those who find themselves in this situation can benefit from taking these three steps.

#1: When you filed matters

The IRS announced in September 2023 that it would stop processing new claims through the new year. This led to a pause that impacted any claims filed after that date. Although initially intended to resume in 2024, this pause remains in effect. As a result, those who filed before this September date are more likely to have received the refund.

It is also important to note that the agency has stated it will move forward slower than initially estimated. This is largely due to the fact that the agency plans to use a more complex review process to better ensure only those who truly qualify to receive the benefit.

#2: Watch your mail

In some cases, the agency may ask for additional documentation to support the claim. A failure to respond to this notice can result in further delays.

#3: Next steps

After reviewing the requirements for qualification, business owners have two options. First, those who believe they filed in error should consider the withdrawal program. The IRS has provided this special program primarily in response to overly aggressive marketing practices targeting small business owners to improperly file for the ERC.

The second option at this time is to continue to wait for further guidance from the IRS. It is also wise to begin a conversation with legal counsel who has experience in these types of matters. Goldburd McCone has navigated these legal waters and can discuss paths forward with business owners. This can include a review of the situation and a discussion of possible tax compliance options that may help to make the most of the ERC and other potential tax benefits while also laying the foundation to counter any allegations of wrongdoing from the IRS.