Delays Continue to Result in Businesses Not Receiving Pandemic Relief Benefits

The Treasury Inspector General for Tax Administration released a report August 31, 2022 titled "Delays Continue to Result in Businesses Not Receiving Pandemic Relief Benefits." 

Key highlights included in the report:

• Continued processing delays have prevented businesses from receiving pandemic relief benefits

• The IRS did not begin processing claims for the Employee Retention Credit for 12 months due to a lack of updated programming and procedural guidance

• The IRS does not have processes to verify a recovery startup business or effective controls to deny the Employee Retention Credit for non-recovery startup businesses

• Amended returns with Employee Retention Credit claims were not referred to Examination for review as required

• As of February 1, 2022, there were 447,435 Forms 941-X waiting to be processed

• Over 90 percent (402,814) of these Forms 941-X were over-aged, i.e. have not been processed within 45 calendar days

• 60,885 (13.6 percent of the Forms 941-X were not processed within 180 calendar days

You can review the full report and TIGITA recommendations online here. 

 This information means our clients are continuing to see long times between filing for tax credits and the receipt of credits. If you have additional questions, please reach out to our team of experts at info@siliconledger.com or 615.669.2470.