The IRS has stopped processing new Employee Retention Credit (ERC) claims because they are worried about scams and improper claims. (IR 2023-169, 9/14/2023)
They will still work on claims filed before the stop, but it will take longer because they are doing more checks. The IRS is also creating programs to help businesses that dishonest people are tricked. They are working with the Justice Department to catch fraudsters and are investigating many cases. Taxpayers must ensure they are eligible for the ERC before claiming it.
Suppose you have filed an Employee Retention Credit through a company other than your Payroll Company, Accountant, or Tax Attorney. In that case, you may have been a victim of the ERC scam. Usually, the scammers claim you can get a large ERC even though you are not qualified. They tax 15% or 20% of the fee, and your business is stuck with an IRS audit, repayment of taxes, penalties, and interest.