Update: The IRS Halt of ERC Processing

On September 14, the IRS made the unprecedented announcement to place a moratorium on Employee Retention Credit (ERC) claims, sending a clear message to ERC mills and helping small businesses.  

Effective September 14, 2023, the IRS will not review or process any ERC claims received on or after September 14 through at least the end of 2023. Furthermore, the IRS is encouraging taxpayers with existing claims to withdraw them if they believe they are ineligible. The IRS has provided an ERC Eligibility Checklist to help small businesses better understand if they qualify.  For those businesses that already have a processed claim and are ineligible, the IRS will initiate a settlement program. 

During IRS Commissioner Werfel’s public announcement last week, he encouraged taxpayers to consult with tax professionals on ERC claims 17 times – this strong acknowledgment of the profession’s role is a result of all the hard work by tax professional organizations like the AICPA and state CPA societies that have continued the drumbeat on this important issue.