ERC claims processing lags will save money, IRS says

ERC Delays Pay Off, IRS Says

Delays in processing claims in the problem-plagued employee retention tax credit program will actually save money for the government, the IRS insists.

The pandemic-era employee retention credit has been a thorn in the agency’s side for over a year now, as staff has been dealing with a flood of claims. Congress created the credit four years ago to help struggling businesses keep employees on the payroll, but some started claiming the credit when they didn’t qualify. Lawmakers recently have pressured the agency to resolve legitimate claims that have been on hold as it sorts ...