Overview:
On September 14, 2023, the IRS posted a new press release that it will stop processing all new ERC claims until at least the end of the year (December 31st, 2023). This comes from the continuing warnings from tax professionals that businesses are being persuaded that they are eligible, when in fact they do not meet the requirements for the ERC credit. In addition, the IRS will now take longer to process the previously reported claims. Expect:
Stricter compliance reviews
Processes goal of 90 days to 180 days (or longer if facing audit)
Additional documentation may be requested to help back up claim.
IRS also will potentially provide payment relief/settlement program if an improper ERC claim was processed and the businesses were found victims to aggressive promoters. For businesses currently have outstanding claims waiting to be processed:
For those who haven't filed a claim yet, consider reviewing the guidelines and waiting to file
Withdraw an existing claim for businesses that have already filed (if after review of the rules, you are no longer eligible)
Wait for the IRS ERC settlement program to be finalized (if you already received the credit but are now no longer eligible).
Source: IRS Release