10/01/2024

IRS Opens New Process Related to Employee Retention Credit Claims

The agency continues to delay implementing payouts for many legitimate claims

The Internal Revenue Service (IRS) announced on Sept. 26, 2024, that the agency is opening a supplemental claim process to help third-party payers and their clients resolve incorrect claims for the Employee Retention Credit (ERC).

Third-party payers report and pay clients’ federal employment taxes under the third-party payer’s Employer Identification Number. They handle clients’ payroll and tax reporting duties. Some of these TPPs filed ERC claims for multiple employers. If a third-party payer’s client has since determined it is ineligible for the ERC and wants to resolve their claim, it is the third-party payer that needs to correct it.

This supplemental claim process lets a third-party payer that filed a prior claim with multiple clients “withdraw” only some clients while maintaining the claims of the qualifying clients.

Please select this link to read the complete press release from the IRS.