Special edition: e-News for Payroll Professionals Employee Retention Credit: Deadlines and processing update

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Issue Number:  2024-12

Inside This Issue

1. Employee Retention Credit: Deadlines and processing update

 1.  Employee Retention Credit: Deadlines and processing update

New consolidated claim process for third-party payers; statement required

To help speed processing of Employee Retention Credit claims, the IRS recently announced a consolidated claim process to help third-party payers and their clients resolve incorrect claims for the ERC.

Third-party payers can use this process through Nov. 22, 2024. This consolidated claim process lets third-party payers that filed a prior claim with multiple clients “withdraw” only some clients’ claims while maintaining the claims of qualifying clients.
TPPs must verify that the claim:

• Includes only business clients that were part of a previous ERC claim.
• Doesn’t increase the amount of ERC claimed by clients.

Consolidated claims must include the full statement on this topic provided at Preparing your consolidated claim.

ERC Voluntary Disclosure Program: FAQs for third-party payers

The ERC Second Voluntary Disclosure Program is also open through Nov. 22, 2024. This program lets taxpayers repay their ERC, minus 15%, if they received the credit after filing an incorrect claim.

TPPs can get more information on helping a client apply for the VDP in the ERC Second Voluntary Disclosure Program frequently asked questions.

Share resources with clients to check eligibility

To help businesses check their eligibility, the IRS offers these resources:

• Warning signs an ERC claim could be incorrect
• Eligibility requirements and definitions in the ERC frequently asked questions
• ERC Eligibility Checklist

IRS continues processing: 400,000 claims in progress

The IRS announced continued progress on ERC claims, with processing underway on about 400,000 claims, representing about $10 billion of eligible claims. Checks are being mailed for eligible claims with refunds, with more planned in the weeks and months ahead.

“The IRS understands the vital importance of Employee Retention Credit payments for struggling small businesses, and we are continuing to make important progress on one of the most complex tax administration provisions we’ve ever had,” said IRS Commissioner Danny Werfel. “The IRS is working diligently to process ERC claims as quickly as possible, while guarding against improper payments driven by unscrupulous marketers.”

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