Where's my ERC refund?

Many businesses filed for employee retention credits. Unfortunately, the IRS has a staggering backlog of Form 941’s to process as a result of ERC filings along with normal quarterly filings. Below is an excerpt from the IRS website – IRS Operations During COVID-19:

The IRS is now opening mail within normal timeframes. As of June 15, 2022, we had 3.7 million unprocessed Forms 941. Tax returns are opened in the order received. If you filed electronically and received an acknowledgment, you do not need to take further action other than promptly responding to any requests for information. We’re working hard to get through the carryover inventory. Please don’t file a second tax return or contact the IRS about the status of your return.

As of June 15, 2022, our total inventory of unprocessed Forms 941-X was approximately 215,000, some of which cannot be processed until the related 941s are processed. While not all these returns involve a COVID credit, the inventory is being worked at two sites (Cincinnati and Ogden) that have trained staff to work possible COVID credits.

Our firm prepared and filed ERC claims for a number of clients. Here are a few actual examples to give you an approximate idea of the current timeline:

Client A

· Mailed 941X 1/18/22

· Received IRS notification of refund on 5/16/22

· As of June 17, the payment has not been received. Usually, payment is received 30-45 days after notification.

Client B

· Filed 4^th Quarter amended 941 5/13/2021

· Received payment 1/19/22

Client C

· Filed amended 941 2/25/22

· Received payment 6/16/22

There seems to be significant variability in the time required to process and receive payment. Some could be due to the service center when you file, the size of the refund, etc. In general, the IRS is working down the backlog, and processing seems to be improving.

Caution, if you filed 8-10 months ago and have received no correspondence probably time to do some checking.

If you have questions, please contact the Dent Moses team.