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September 14, 2023

IRS pauses the processing of employee retention credit claims through at least the end of the year

The IRS has announced a moratorium on processing new employee retention credit (ERC) claims in response to "a flood of improper" ERC claims. The IRS said it is continuing to work on previously-filed ERC claims but said the standard processing goal will go from 90 to 180 days. In the meanwhile, the IRS is developing new initiatives to help businesses who have been the "victims of aggressive promoters," including a settlement program to repay improper ERC payments and a special withdrawal option for claims that have not yet been processed. A Tax Alert is forthcoming.

Published by NTD’s Tax Technical Knowledge Services group; Andrea Ben-Yosef, legal editor