- 4 Reasons Your ERC Refund is Delayed: Why Businesses Need to Stay Ahead
1. Claim Was Filed After September 14, 2023 Moratorium
The IRS instituted a moratorium on processing new ERC claims filed after September 14, 2023. If your claim was filed during this period, it will not be processed until the moratorium is lifted. This moratorium has been a common source of delay for many businesses and does not have a stated end date.
💡 Tip: Stay informed about IRS announcements regarding the moratorium to accurately manage expectations. Utilizing providers that closely monitor IRS updates can ensure timely communication about the resumption of processing.
2. There is an Issue With the Filing
Missing information in your ERC claim can result in significant delays. Errors such as incorrect financial data, missing forms, or incomplete documentation can halt the progress of your refund. Before processing a claim, the IRS requires all documentation and necessary details to be present, accurate, and complete.
💡 Tip: Regular follow-ups with the IRS can help detect issues so that they can be rectified promptly. Additionally, maintaining copies of the proper documentation – this includes payroll records, financial statements, documentation of eligible expenses, government orders and more – can prevent delays and mitigate potential complications.
3. Your Claim was Flagged for Review
Thousands of claims are undergoing additional scrutiny for discrepancies, association with ERC promoters, or require further verification. If a claim is flagged, it indicates a possible lack of essential documentation or unresolved inconsistencies that could prompt an audit.
💡 Tip: Providers experienced in dealing with ERC claims and the IRS can proactively inquire on your behalf to determine if their claims are flagged for review. Companies like alliantNational can assist in preparing for the review process, reducing delays. Well-prepared documentation can expedite reviews and address IRS inquiries.
4. The IRS Lost My Return
Although rare, it is possible for the IRS to misplace or lose a claim. This happens due to administrative errors or during periods of high-volume processing. If you suspect this might have taken place, it’s essential to verify the status of your claim.
💡 Tip: If you’ve noticed an unusual delay, alliantNational can contact the IRS promptly to verify if your claim has been received and is currently being processed. Taxpayers can also contact the Service directly, but many report long hold times and disconnections.
How Savvy Business Owners Are Staying Ahead
Savvy business owners have found that early detection of issues with claims is paramount to expediting delayed refunds. Through regular status checks of ERC claims, business owners can expedite the refund process and minimize disruptions to cash flow.Â
Providers like alliantNational offer continued ERC claim monitoring, providing clarity to business owners waiting on their refunds. Through these services, business owners can trust that their claims are processed efficiently and received in a timely manner, ensuring they receive their hard-earned refunds.
