The IRS is still backlogged from the pandemic relief with 1.4 million outstanding claims for the Employee Retention Tax Credit (ERTC). The ERTC was introduced to help businesses retain employees during the pandemic by offering tax incentives. However, in September 2023, the IRS imposed a moratorium on processing new ERTC claims due to concerns over fraud.
Many small business owners, who acted in good faith to retain employees, are frustrated but are now facing long delays in receiving the benefits they are owed. Some businesses have waited over a year for updates, while others struggle to stay afloat without the promised financial relief.
While the IRS has started processing a small number of “low-risk” claims, most businesses have seen little action. The delays have resulted in a backlog worth over $100 billion. The author and several colleagues have called on the IRS to be more transparent, provide a clear timeline for processing all claims, and prioritize those that are already identified as low-risk.
https://thehill.com/opinion/4999379-covid-19-impact-small-businesses