The status of ERC refunds cannot be traced. While the IRS has made progress in recent years in terms of online tracking and access to information for taxpayers, those systems do not provide any information on the processing time of ERC refund requests in amended payroll tax returns. The 941 forms filed electronically had an IRS processing time of one month. Original forms 941 filed on paper are generally processed within 3 to 4 months.
If your Form 941 request that you originally filed hasn't been reimbursed, it's time to contact the IRS or ask a professional to review Form 941 for potential errors in your request. In a new report, the Treasury's Inspector General of Tax Administration (TIGTA) found that a series of delays in processing the employee retention credit (ERC) in the IRS have caused a continuous accumulation of unprocessed refund payments. Brief background: If you haven't looked at the employee retention credit (ERC), you may be eligible for a payroll tax credit that has resulted in significant refunds. The report continues to analyze “CAT-A,” an IRS program for reviewing ERC claims before paying them.
Although one of the objectives of the ERC was to provide funding to compensate for employee expenses (and, therefore, maintain employment), the inevitable staff deficit means that companies will not receive payments until long after the crisis has passed, and that there will be a further delay in ERC emails. As such, the IRS did not begin to prioritize employment tax returns amended with credits for employers related to COVID-19 or to track the processing of the backlog of forms 941-X suspended for eight months after procedures for processing amended employment tax returns were available. Disaster loan counselors can help your business with the complex and confusing employee retention credit (ERC) and employee retention tax credit (ERTC) program.