Today, the IRS issued an Information Release discussing that the ERC processing moratorium will remain in place.

The IRS stated that for pre-September14, 2023 filings 10 percent to 20 percent of the highest-risk claims will be disallowed and that 10% to 20% of the lowest-risk claims will be refunded. For the remainder of the claims the IRS "will be conducting additional analysis to gather more information with a goal of improving the agency’s compliance review." The IRS also noted that generally the oldest claims will be worked first, and no claims submitted during the moratorium period will be processed at this time.

The IRS emphasized that the refunds that go out will be at a dramatically slower pace than before the pandemic. Since September of last year, the IRS has issued 28,000 payments of ERC refunds, which on average, is less than 750 refunds per week. Taxpayers will likely see a slightly higher rate of payments go out later this summer.

Frost Law will provide additional analysis in the near future.