Frequently Asked Questions

There are only two deadlines to claim your Payroll Tax Refund from the IRS under the ERC Program: For all quarters in 2020, the deadline to apply for the ERC is April 15, 2024, and for all quarters in 2021, the deadline is April 15, 2025. (See Form 941-X Instructions)

The IRS will issue you Notice CP210 when your ERC claim has been processed and an adjustment to your payroll tax return has been made – your payroll refund check.  IRS Notice CP210 directs companies to call 800-829-0115 with any questions.

Alternatively, try contacting the IRS at 877-777-4778. Better yet? Just ask your ERC Prep Customer Success Manager to reach out to the IRS on your behalf.

The Treasury Inspector General for Tax Administration (TIGTA) found that a variety of ERC processing delays at the IRS have caused its backlog of unprocessed refund payments.  “…after processing claims for only two months after a 12-month delay… the IRS did not take immediate steps to prioritize Form 941-X claims that were suspended “.  

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The definition of “Eligible Employer” can be found in Section 2301(c)(2)(A) of the CARES Act. Clarified in IRS Notice 2021-20, there are various factors to consider, and it often depends on whether a company experienced a partial suspension. Generally, a partial suspension of operations means

• more than a nominal portion of business operations is suspended by a governmental order and those operations cannot be performed remotely in a comparable manner; or
• business operations continue, but the operations are subject to modification due to a governmental order that has more than a nominal effect on the business operations.

Documentation to show how you:

• determined your company was an eligible employer that paid qualified wages
• determined the amount of allocable qualified health plan expenses
• determined whether you are a member of an aggregated group treated as a single employer

As well as:

• copies of any completed Forms 7200 submitted to the IRS,
• completed federal employment tax returns

See Notice 2021-20, Q&A 70 for the comprehensive list

Employers claiming $200,000 per quarter or less in Payroll Tax Refunds under the ERC Program are generally receiving checks from the IRS within four months.  Larger ERC claims may take longer as the IRS continues to work through the backlog of amended Form 941 filings.

Click here for the status of IRS’ processing of Form, 941 Employer’s Quarterly Federal Tax Return.