IRS Update: ERTC Claim Processing Amid Moratorium And Increased Scrutiny

The IRS began a much-publicized moratorium on processing ERTC claims in September. I am often asked if the claims are now being processed. On June 20, 2024, the IRS issued IR-2024-169, which explains that the IRS is working on the oldest claims, but at this point, no claims submitted during the moratorium period will be processed. The IRS is concerned about the number of claims submitted long after the pandemic. They are seeking help from Congress on the future of the program and a possible extension of the statute of limitations.

The IRS has used the time since September to digitize and analyze data. Nearly 1 million claims were submitted on amended paper returns. They have determined that over $86 billion in claims have been filed. 10% – 20% of the claims fall in the highest-risk group, and these are claims the IRS believes show clear signs of being erroneous. The IRS will deny these claims in the coming weeks. The IRS determined that another 10% – 20% of the