IRS Faces Backlog of Over 1.5 Million ERC Claims

As of December 9, 2023, the IRS had 1,057,000 unprocessed Forms 941-X, primarily Employee Retention Credit (ERC) refund claims. This number likely understates the total, with recent weekly submissions potentially adding up to 1.5 million pending claims. With the moratorium on new ERC claims since September 15, 2023, processing has slowed significantly. Former IRS Commissioner Chuck Rettig and other experts emphasize the need for balance between reviewing claims and distributing funds. The IRS has been digitizing forms to improve verification, but high fraud rates reported by the agency complicate processing. Taxpayers are advised to contact the IRS or Taxpayer Advocate Service to expedite their claims, some experts even suggest that litigation might be necessary as a last resort for some taxpayers.

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