Providing Clarity Regarding the Recent IRS ERC Processing Changes

PASADENA, Calif., Sept. 26, 2023 /PRNewswire/ — The IRS recently announced another change to how they are handling Employee Retention Tax Credit (ERC) claims and yet again, are creating more confusion. The IRS stated they are not processing NEW claims right now, but what does that really mean? Five Star Tax offers these answers to try and help understand the current state. 

The main reason for this announcement is to try and clean up the fraudulent companies that flooded the space. “I think this announcement is good for us. We are telling business owners the same thing we’ve been saying since the start, use a provider that has experience working with the IRS and employs a tax attorney to provide audit protection. The IRS has turned on the lights and the cockroaches are scattering. This helps us help and protect more business owners.” said Mike Forde, Managing Partner. 

What if I have not qualified and/or submitted my application yet?
Per a recent conversation with an IRS Agent at the Small Business Expo, business owners should absolutely still submit their claims, but they better not be fake. These claims are going to take longer to process, but the program is still open with its original deadlines

What if I have an ERC application that is still processing with the IRS?
As pointed out by the Journal of Accountancy, applications are still being processed but, based on additional scrutiny, these claims could now take longer. Also, there is a settlement process to withdraw fraudulent claims. 

What if I have already received my credit check(s) from the U.S. Treasury?
If you are confident your claim was submitted correctly, there is nothing to do. If you received the funds through erroneous claims, you could be audited and contacted to settle this matter with the IRS. 

Small Business Expo (SBE) – Phoenix, 9/27/2023
Five Star Tax – The ERC Consulting Experts will be at the Small Business Expo (SBE) – Phoenix Wednesday, September 27th in booth #603.

About Five Star Tax:
Five Star Tax – The ERC Consulting Experts is a group of business owners, tax attorneys, and Certified Tax Professionals dedicated to helping you navigate through this challenging application process. We use our expertise working with the IRS to ensure our clients get the help they need for a compliant return with audit protection. 

For media inquiries, please contact:
Mike Forde
Managing Partner

SOURCE Five Star ERC Experts