IRS Accelerates Work on Employee Retention Credit Claims, IR-2024-263

The IRS has made significant progress on Employee Retention Credit (ERC) claims, with processing underway on about 400,000 claims, worth approximately $10 billion. The IRS is separating eligible claims from the wave of ineligible ones, with checks being mailed for approved claims.

Further, the IRS has notified the opening of a consolidated claim procedure allowing third-party payers to resolve incorrect Employee Retention Credit (ERC) claims filed on behalf of multiple clients. Moreover, the IRS is continuing to work on denying improper ERC claims, conducting audits and pursuing investigation into potential fraud and abuse.

Additionally, the IRS reminded businesses that have received ERC payments to recheck eligibility requirements and consider the second Employee Retention Credit (ERC) Voluntary Disclosure Program (VDP), available until November 22, 2024, to correct improper claims at 15 percent discount. The IRS’s claim withdrawal program remains open for businesses whose ERC haven’t been paid yet. Full details are available in Ann. 2024-30. Finally, the IRS has offered the ERC Eligibility Checklist to help businesses understand eligibility requirements and suggest next steps.

IR-2024-263