Can You Check Your ERC Status Online?

The Employee Retention Credit (ERC) provided eligible businesses with a refundable tax credit against certain employment taxes. Businesses often need to track their claim’s progress after submitting forms to the Internal Revenue Service (IRS). Understanding the status of an ERC claim is important for financial planning, as tracking the application’s progress helps businesses anticipate when they might receive their credit.

Online Status Check Availability

The Internal Revenue Service (IRS) does not offer a direct, real-time online portal to check the status of an Employee Retention Credit (ERC) claim, including amended returns like Form 941-X. There is no dedicated online tool providing step-by-step updates on individual ERC claims. This means taxpayers cannot log into a specific system to see if their ERC application is “received,” “processing,” or “approved” in real-time.

Taxpayers can access general tax account transcripts online through the IRS website. These transcripts may show account activity, such as a refund posting or a tax period adjustment. However, these transcripts do not provide detailed information about the specific processing stage of an ERC claim. Taxpayers should understand these limitations as they navigate their options for checking claim status.

Information Needed Before Checking

Before checking the status of an Employee Retention Credit (ERC) claim, taxpayers must gather specific information. The Employer Identification Number (EIN) uniquely identifies the business to the IRS for tax purposes. This number can typically be found on previously filed tax returns, such as Form 941, Employer’s Quarterly Federal Tax Return, or other official business documents.

The exact tax period(s) for which the ERC was claimed are essential. This information is on Form 941-X. Knowing the precise quarter and year helps the IRS locate the correct amended return. Businesses should also note the date they originally filed their Form 941-X.

The legal name of the business, as it appears on official IRS records, is required for verification. This ensures that the inquiry relates to the correct entity. The exact amount of the credit claimed for each tax period is also crucial for accurate verification. This claimed amount is clearly stated on the filed Form 941-X and should be readily accessible from the business’s tax records.

Checking Your ERC Status

After gathering all necessary information, taxpayers can check their Employee Retention Credit (ERC) status through various methods. One primary method involves contacting the IRS directly by phone. The IRS Business & Specialty Tax Line, 800-829-4933, handles business and specialty tax questions.

When calling, taxpayers should be prepared for potentially long wait times due to the high volume of inquiries. They will need to provide their Employer Identification Number (EIN), the business’s legal name, and the tax period(s) for which the ERC was claimed. The IRS representative can then provide an update on the status of the filed Form 941-X, Adjusted Employer’s Quarterly Federal Tax Return.

Alternatively, taxpayers can submit a written inquiry to the IRS regarding their ERC claim status. A letter should state the business’s EIN, legal name, the tax period(s) in question, and the date the Form 941-X was filed. Mail this correspondence to the IRS service center where the original Form 941-X was submitted. Response times for mail inquiries are considerably longer, often ranging from several weeks to a few months.

Taxpayers can also utilize the IRS’s online account services to access tax transcripts. By logging into their IRS online account, businesses can request and view various transcripts, such as the account transcript. This transcript may reflect when a refund was issued or an adjustment was posted to the tax account, offering an indirect indication of claim processing.

Understanding Status Updates

When checking the status of an Employee Retention Credit (ERC) claim, taxpayers may encounter several responses. A “Received” status means the IRS has acknowledged receipt of the filed Form 941-X.

If the status is “Processing,” the IRS is actively reviewing the submitted documentation for accuracy and compliance. Processing times for amended returns like Form 941-X can be extensive, often taking many months.

An “Approved” status signifies the IRS has validated the claim and determined the business is eligible for the requested credit. The IRS will then initiate the refund process, which may involve direct deposit or mailing a check. “Refund Issued” means the payment has been disbursed.

A claim may be placed “Under Review” or selected for “Audit.” This indicates the IRS requires additional information or is conducting a thorough examination. Taxpayers should expect official correspondence from the IRS requesting further documentation or clarification.

If an ERC claim is “Denied,” the IRS has determined the business does not meet eligibility criteria or there were errors in the submission. A denial letter will provide the reasons for the decision. Taxpayers have the right to appeal a denial, and the letter will outline the procedures.