IRS Introduces Supplemental Claims for Payroll Companies Handling ERC Errors

The IRS has introduced a new supplemental claim process to assist third-party payroll companies in resolving incorrect Employee Retention Credit (ERC) claims filed on behalf of their clients. Through this process, third-party payers can withdraw specific clients from previous claims while maintaining valid claims for those who qualify. The supplemental claims must be filed using an adjusted employment tax return (Forms 941-X, 943-X, 944-X, or CT-1X) and apply to tax periods with claims submitted on or before January 31, 2024. This process replaces prior claims, treating them as never filed, and ensures that only eligible claims remain. The process does not apply to employers who file claims using their own EIN or third-party payers who have already received the full ERC refund or credit. Payers must submit these supplemental claims by November 22, 2024. The IRS will review the submissions to determine whether they are accepted, partially allowed, or require further examination.

If you would like to read more, please visit:

https://www.irs.gov/newsroom/irs-opens-new-process-for-payroll-companies-third-party-payers-to-help-clients-resolve-incorrect-claims-for-the-employee-retention-credit