The IRS is starting to process older ERC claims that were submitted prior to the September 15, 2023, moratorium date. (IR-2024-169) However, the IRS has identified tens of thousands of these pre-moratorium claims as improper claims. They will be denying those claims in the next few weeks. Then, during this summer, the IRS will begin releasing payments for the 10–20% of pre-moratorium claims that it has determined are low-risk and will begin processing the 60–70% non-high-risk claims later this summer.
The IRS announcement also states:
- The moratorium placed on processing claims submitted after September 14, 2023, will remain in place for now;
- The IRS is considering reopening the Voluntary Disclosure Program at a reduced rate (aka, less favorable terms) for those with previously processed claims to avoid future compliance action by the IRS;
- There are still more than 1.4 million outstanding ERC claims, with approximately 17, 000 claims per week being filed since the moratorium was put in place; and
- Taxpayers and tax professionals should not call the IRS toll-free lines about the status of an ERC claim because IRS agents staffing these lines will not have any information concerning the status of these claims.