Each year in January, the Taxpayer Advocate Service (TAS) presents its annual report to Congress, consisting of a summary of the ten most serious problems encountered by taxpayers each year. It may not be any surprise to those waiting for their Employee Retention Tax Credit (ERC) refund, but the most serious problems reported for this year are the IRS delays, inefficiencies and lack of transparency in their processing of these claims. Created in 1996 by Congress, the TAS is an independent organization within the IRS; their job is to ensure that every taxpayer is treated fairly under the Taxpayer Bill…
Posts tagged as “ERC”
There is a fair amount of activity with the IRS-processing Employee Retention (Tax) Credit (ERC) refunds with two announcements this past month. I would call it good news for those who have legitimate claims and bad news for those who filed a not-so-legitimate claim. Actually, not all bad news for the not-so-legitimate claim group. The IRS has reopened the Voluntary Disclosure Program (VDP), which will run through November 22, 2024. As you may recall, this was started earlier this year whereby the IRS allowed you to revoke your claim and return any funds you believe were improperly claimed, keeping 20%…
Multiple lawsuits have been filed against the IRS, alleging that their lengthy processing time for ERC claims is violating their rights, including one to stop the moratorium that was imposed on new filings made after September 14, 2023. In recent IRS responses to these lawsuits, we have learned new information on how they intend to clear their backlog of 1.4+ million returns they have had as of May 18, 2024. 880,000 of those returns were filed before the moratorium on September 14, 2023, so in essence, the fact there is a moratorium at all, those returns received after that date…