Frost Law
The COVID-19 pandemic presented unprecedented challenges for businesses, forcing them to navigate uncharted waters to ensure the well-being of their employees and the survival of their operations. In response to this unparalleled crisis, the Employee Retention Credit (“ERC”) emerged as a beacon of relief for those who struggled to keep their doors open during the crisis.
The journey to financial recovery has encountered a new obstacle with the IRS-imposed moratorium on processing ERC claims and delays in refund payments. The much-anticipated funds, crucially factored into business plans, have yet to materialize. This leaves many businesses grappling with uncertainty, wondering, "Where is my ERC refund?"
The delayed financial support adds an extra layer of complexity to an already challenging situation. Businesses that weathered the storm must now navigate bureaucratic hurdles to access the relief they desperately need. As they await the resolution of these delays, the pressing question lingers:
What steps can be taken to finally receive their ERC refunds?
Currently, some employers have found success in expediting their ERC claims by seeking assistance from the Taxpayer Advocate Service (“TAS”). Alternatively, when the IRS fails to act upon the claim within six months or disallows a refund claim, a taxpayer may also file a lawsuit in the Court of Federal Claims or the United States District Court.1
TAS is an independent office within the IRS that assists with tax problems when a taxpayer is unable to resolve the issue through normal IRS procedures or IRS inaction is causing a hardship. Using Form 911, Request for Taxpayer Advocate Assistance, an employer can request TAS work with the IRS to expedite the processing of their ERC claim. TAS assistance is generally available to employers who are experiencing or about to experience economic harm, facing an immediate threat of adverse action, those who will incur significant costs (including costs for professional representation), or those who will suffer irreparable injury or long-term adverse impacts if the ERC claim remains unprocessed.
In his recent testimony before the House Ways and Means Committee, IRS Commissioner Daniel Werfel stated that the IRS is currently processing between 1,000 - 2,000 ERC claims per week, with the vast majority of all post-moratorium claims being pushed through by either TAS or an employer’s congressional representative.2 Employers seeking to expedite their ERC refunds may benefit from TAS assistance as the moratorium has all but halted claim processing.
A second avenue for expediting an unprocessed ERC claim or challenging the IRS’ disallowance of a claim is to file a refund suit in federal court. When the IRS fails to act upon a claim for a refund within six months, a taxpayer may bring a lawsuit against the IRS.3 Likewise, when the IRS disallows a claim for a refund, a taxpayer has two years to challenge the disallowance in federal court. Both types of challenges are heard in either the Court of Federal Claims or the United States District Court.
These challenges will essentially take an unpaid or disallowed claim out of the IRS’ administrative channels which enables the courts to evaluate the refund claim and order payment of the refund. By filing a lawsuit, an employer can bring a stagnating ERC claim into a high-priority case receiving prompt resolution.
The IRS’ immense backlog of unprocessed ERC refund claims coupled with the drastically slowed processing of claims amidst the moratorium has left many employers waiting indefinitely for much-needed relief funds. Those who simply cannot afford the continued uncertainty of massive bureaucratic delays may benefit from attempting to expedite their claim.
Frost Law attorneys have years of experience in tax controversy matters, ERC eligibility, and refund claim disputes. If you need assistance in determining how to expedite an ERC claim or resolve a disallowed claim, don't hesitate to reach out to us at (410) 862-2834 or schedule a confidential consultation with our team of tax attorneys.
The COVID-19 pandemic presented unprecedented challenges for businesses, forcing them to navigate uncharted waters to ensure the well-being of their employees and the survival of their operations. In response to this unparalleled crisis, the Employee Retention Credit (“ERC”) emerged as a beacon of relief for those who struggled to keep their doors open during the crisis.
The journey to financial recovery has encountered a new obstacle with the IRS-imposed moratorium on processing ERC claims and delays in refund payments. The much-anticipated funds, crucially factored into business plans, have yet to materialize. This leaves many businesses grappling with uncertainty, wondering, "Where is my ERC refund?"
The delayed financial support adds an extra layer of complexity to an already challenging situation. Businesses that weathered the storm must now navigate bureaucratic hurdles to access the relief they desperately need. As they await the resolution of these delays, the pressing question lingers:
What steps can be taken to finally receive their ERC refunds?
Currently, some employers have found success in expediting their ERC claims by seeking assistance from the Taxpayer Advocate Service (“TAS”). Alternatively, when the IRS fails to act upon the claim within six months or disallows a refund claim, a taxpayer may also file a lawsuit in the Court of Federal Claims or the United States District Court.1
TAS is an independent office within the IRS that assists with tax problems when a taxpayer is unable to resolve the issue through normal IRS procedures or IRS inaction is causing a hardship. Using Form 911, Request for Taxpayer Advocate Assistance, an employer can request TAS work with the IRS to expedite the processing of their ERC claim. TAS assistance is generally available to employers who are experiencing or about to experience economic harm, facing an immediate threat of adverse action, those who will incur significant costs (including costs for professional representation), or those who will suffer irreparable injury or long-term adverse impacts if the ERC claim remains unprocessed.
In his recent testimony before the House Ways and Means Committee, IRS Commissioner Daniel Werfel stated that the IRS is currently processing between 1,000 - 2,000 ERC claims per week, with the vast majority of all post-moratorium claims being pushed through by either TAS or an employer’s congressional representative.2 Employers seeking to expedite their ERC refunds may benefit from TAS assistance as the moratorium has all but halted claim processing.
A second avenue for expediting an unprocessed ERC claim or challenging the IRS’ disallowance of a claim is to file a refund suit in federal court. When the IRS fails to act upon a claim for a refund within six months, a taxpayer may bring a lawsuit against the IRS.3 Likewise, when the IRS disallows a claim for a refund, a taxpayer has two years to challenge the disallowance in federal court. Both types of challenges are heard in either the Court of Federal Claims or the United States District Court.
These challenges will essentially take an unpaid or disallowed claim out of the IRS’ administrative channels which enables the courts to evaluate the refund claim and order payment of the refund. By filing a lawsuit, an employer can bring a stagnating ERC claim into a high-priority case receiving prompt resolution.
The IRS’ immense backlog of unprocessed ERC refund claims coupled with the drastically slowed processing of claims amidst the moratorium has left many employers waiting indefinitely for much-needed relief funds. Those who simply cannot afford the continued uncertainty of massive bureaucratic delays may benefit from attempting to expedite their claim.
Frost Law attorneys have years of experience in tax controversy matters, ERC eligibility, and refund claim disputes. If you need assistance in determining how to expedite an ERC claim or resolve a disallowed claim, don't hesitate to reach out to us at (410) 862-2834 or schedule a confidential consultation with our team of tax attorneys.
