You've asked, and we're here with the answers. Many of you are wondering about the status of your Employee Retention Credit (ERC) refunds and why there's a delay.
The truth is that the IRS is currently swamped with ERC claims, leading to longer processing times.
Our tax team has observed that refunds are taking about 6-10 months to process.
Why Are ERC Refunds Taking Longer?
The IRS has increased the scrutiny of ERC claims to prevent fraud and ensure that only valid claims are paid out. This means they've moved from a standard processing time of 90 days to a more cautious 180 days, with the possibility of even longer for some claims. The IRS is asking for more documentation in some cases, which adds to the wait time.
How Can You Follow Up on Your ERC Refund?
For those of you looking to get in touch with the IRS about your ERC refund, here's the most direct route:
Call the IRS Tax Assistance at 1-800-829-1040.
Hours of Operation: Monday to Friday, 7 a.m. to 10 p.m. EST. For the shortest wait times, we suggest you call at 7 a.m. EST as soon as they open.
Make sure to have your tax identification number, your tax forms, and any IRS notices you may have received handy when you call.
What Can You Do While You Wait?
While waiting for your refund, you can check out the IRS's official statement for more details on the current state of ERC processing. This information can provide greater context and help set your expectations: IRS Newsroom Update on ERC.
Baron Payroll's Commitment to You
We know that waiting for your ERC refund can be stressful.
Rest assured, we're here to provide clarity and support during these times. Your trust in us is valued, and we're dedicated to helping you navigate these delays with as much ease and information as possible.
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