Latest Facts and News
- The IRS has resumed the IRS ERC claim processing after a temporary pause.
- As of October 2024, the IRS is processing about 400,000 claims worth $10 billion.
- Average ERC refund processing times have increased significantly due to high claim volumes.
- The Employee Retention Credit (ERC), part of the COVID-19 tax relief updates, was introduced in March 2020 under the CARES Act to help businesses during the pandemic.
With endless businesses filing for Employee Retention Credit (ERC) refunds, understanding the core of IRS processes can quickly become difficult to gauge. But it’s normal, at least for many around the US.
Truth be told, the key here is knowing how to interpret the updates you get and what actions follow.
Now, here’s something you should know—simply waiting around for a refund update can end up costing you time, particularly if there are errors or processing delays in your application.
In this blog post, we’ll walk you through how to check ERC refund status, along with updates and methods. So, stay with us until the end!
Methods to Check Your ERC Refund Status
If you’re waiting for your Employee Retention Credit (ERC) refund, here’s how to check ERC refund status simply and effectively to avoid any ERC refund delays.
1. Contact the IRS
You can call the IRS business helpline at 800-829-4933 to check the status of your ERC refund. During the call, provide details about your application to help the IRS locate your records.
Have the following information ready:
- Your Employer Identification Number (EIN).
- The quarters for which you filed amended returns.
- The date you mailed your 941-X forms.
- The amount you expect to receive is your ERC refund.
2. Visit Your Local IRS Office
For a more personalized approach, you can visit your nearest IRS office. This method allows you to speak directly with a tax advocate assistant or IRS representative, who can access your records and provide detailed updates.
- Bring your identification and all relevant tax documents, such as your 941-X forms and proof of mailing.
- It’s recommended that you schedule an appointment ahead of time to reduce wait times.
3. Contact Your ERC Filing Assistance Provider
If you used a third-party company or tax professional to help file your ERC claim, reach out to them directly. Many ERC service providers offer ongoing support and can update your claim status. They may have insights into the process and can often answer specific questions about your filing.
Plus, if you need immediate assistance on how to check ERC refund status, immediately have a word with Hopkins CPA Firm. We’re here to help with your ERC claim, provide updates, and answer your questions.
Keep In Mind →
There’s no online tool if you are specifically finding an answer to “How to check ERC refund status through any online method?” The IRS doesn’t offer this service for ERC claims like they do for regular tax refunds. Your best option is to call the IRS directly or contact the organization that helped you file your claim.
Additionally, while tools like “Where’s My Refund” and “Where’s My Amended Return?” exist, they are not designed to track ERC refunds. These tools are only helpful for tracking individual income tax refunds or amended personal tax returns, not payroll tax credits like the ERC.
Understanding ERC Refund Processing Times
Now that we know how to check ERC refund status, let’s take a closer look at the processing times.
The processing times for ERC refunds have increased significantly. While the initial estimate was six to eight weeks, businesses now report waiting four to twelve months on average, with some ERC processing delays lasting even longer.
This delay is due to multiple factors:
- High Volume of Claims: The IRS has been bombarded with so many ERC claims that it has built a huge backlog of payroll tax returns that will never be processed later.
- Fraud Prevention Measures: On September 14, 2023, the IRS temporarily halted filing new ERC claims to implement tighter safeguards against fraudulent claims.
- Risk-Based Processing: On October 10, 2024, the IRS began processing 400,000 low-risk claims worth $10 billion, while medium-risk claims face delays and audits, and high-risk ones undergo stricter IRS claim reviews with longer wait times.
- Disallowance of Claims: The IRS reported that 28,000 claims in the total amount of $5 billion have received disallowance letters primarily based on the probability of significant errors. However, the IRS acknowledged that up to 10% of those disallowances could actually be errors.
- Prioritization of Claims: The IRS is considering low-risk claims first when processing them, which helped it identify the claims in the first place. Organizations have to file their claims after September 14, 2023, only after receiving a settlement for the previous ones.
Key Updates for Businesses
While refunds for low-risk claims have started, businesses with medium-risk or high-risk claims should prepare for further delays. Staying informed and ensuring all claims are accurate is crucial to avoid further complications
Also Read → Reporting ERC on Tax Returns: Step-by-Step Guide
In Closing!
There are situations when ERC refunds can rather be a tedious process and the time and chances of getting a refund continue to be unpredictable. However, the truth is, if you find out how to check ERC refund status and stay informed on this topic, it will help you deal with it better.
That said, the ERC payment timeline is long, but with some amount of patience, it will be worth the wait because the IRS is slowly working through its backlog.
No more wading through it alone. Remember, with Hopkins CPA Firm, you are not tackling this alone. Get in touch today.
FAQ's
Can I check my ERC refund status online?
What information do I need when calling the IRS about my ERC refund?
When you call the IRS to inquire about how to check ERC refund status, make sure you have these things handy:
- Your EIN
- Details about your tax return
- Any notices you’ve received from the IRS about your claim
How often should I check on my ERC refund status?
What should I do if my ERC refund is taking longer than expected?
If it’s been more than 6-12 months since you filed, don’t panic. The IRS is dealing with a huge backlog. But if you’re worried, you can:
- Give the IRS a call to check on your status
- Reach out to the company that helped you file, if need be
- Double-check that you sent in all the right paperwork
- Be patient; sometimes it just takes time
Are there any red flags that might delay my ERC refund?
A few things could slow down your refund:
- Mistakes on your form
- Missing information
- If your business looks like it might not qualify
- If you filed after September 14, 2023 (the IRS is being extra careful with newer claims)
If you’re worried about any of these, it might be worth talking to Hopkins CPA Firm to make sure everything’s in order.