New ERC Processing Suspended by IRS

As of last Thursday, the IRS has suspended the processing of new Employer Retention Credit [ERC] submissions and slowed the processing of those already received. This will allow the IRS time to conduct a more in-depth review of claims to identify those that are ineligible.

What is the ERC?

The ERC was offered to support small business and tax-exempt organizations as they weathered the economic impact of COVID-19. The ERC program offers eligible employers a refundable tax credit for retaining employees or covering healthcare expenses during 2020 and 2021. 

Sadly, there have been myriad “bad actors” who have aggressively submitted fraudulent claims on behalf of small businesses and tax-exempt organizations, charging a significant percentage of the refund for their services. Hundreds of investigations are being conducted and some have already resulted in federal charges.

Auxilio’s Clients’ Claims

Auxilio has partnered with a trusted tax professional to identify clients who are eligible and to prepare accurate submissions. If your church or organization has submitted a claim using our trusted partner, you can rest assured that the eligibility documentation, calculation and claim was completed with integrity. We are confident the claims made on behalf of our clients meet the IRS eligibility requirements and will stand under enhanced review by the IRS.

If you have already submitted your claim but have not yet received a ruling, you will likely  experience a delay as the IRS has now increased processing time for submitted claims from 90 to 180 days. 

If you have not yet submitted your claim, be advised that new claims will not be processed at least through the end of 2023. New claims will not be accepted until the IRS lifts the suspension and resumes processing. This could potentially get pushed back further into 2024.

Questions? 

Auxilio clients should ask their Partner Strategist or contact us at hello@auxilio.partners for more information on the ERC process.