How to Check the Status of an ERC Refund

The Employee Retention Credit (ERC) provided a refundable tax credit for businesses that retained employees during the COVID-19 pandemic. Many businesses filed for this credit by amending their payroll tax returns. This article provides steps and resources for taxpayers to track their ERC refund status.

Information Required for Inquiry

Before inquiring about an ERC refund, gather specific documentation. Having these details available streamlines the process and ensures smoother interaction with IRS systems and representatives.

Required information includes the business’s Employer Identification Number (EIN), full legal name, and business address as filed with the IRS. This identification is fundamental for the IRS to locate tax records.

Information related to the filed Form 941-X, Adjusted Employer’s Quarterly Federal Tax Return or Claim for Refund, is also necessary. This includes the exact tax period(s) for which the ERC was claimed (e.g., Quarter 2 of 2020 or Quarter 3 of 2021) and the submission date of Form 941-X.

Taxpayers should also know the precise ERC refund amount claimed for each period. Any tracking or confirmation numbers received upon submission of Form 941-X should be kept on hand. If an authorized representative makes the inquiry, a valid Form 2848, Power of Attorney and Declaration of Representative, must be on file with the IRS.

Checking Status Through IRS Online Account

While the IRS does not offer a dedicated “Where’s My Refund?” tool for ERC claims, businesses can utilize their IRS online account to monitor the status of submitted Form 941-X. This online portal provides access to business tax information and requires a secure login.

To begin, log in to your IRS online business account, or create one if needed. This process often involves identity verification through a service like ID.me, which may require a government-issued photo ID. Once logged in, users can navigate to sections that display business tax information and account transcripts.

Within the online account, taxpayers can review account transcripts, such as the “Record of Account” or “Wage and Income Transcript,” for updates on filed returns. These transcripts show when a return was received and if any adjustments were made. The IRS Business Tax Account allows downloading PDF transcripts for various forms, including Form 941.

Checking the account balance for credits or pending refunds can provide indirect status updates. The online account may also display notices or communications from the IRS related to the ERC claim. While not a real-time tracker, these features confirm the IRS’s receipt of Form 941-X and indicate processing progress.

Checking Status Via Phone

Contacting the IRS directly by phone is another method to inquire about an ERC refund. The IRS Business and Specialty Tax Line is the appropriate contact, available Monday through Friday, 7:00 a.m. to 7:00 p.m. local time.

Before calling, have all relevant information accessible: the business’s EIN, full legal name and address, specific tax periods for the ERC claim, Form 941-X submission date, and exact refund amount. This preparation helps the IRS representative quickly locate records.

To reduce wait times, call early in the morning. Mondays tend to be the busiest, so calling on other weekdays might result in shorter hold times. When the automated system answers, select options for business or specialty tax inquiries, specifically regarding employment taxes or refunds, to reach the correct department.

When speaking with an IRS representative, answer verification questions to confirm your identity. Clearly state your reason for calling and ask specific questions about your Form 941-X and ERC refund status. Record the date, time, the representative’s name or ID number, and a summary of the conversation for future reference.

Understanding Refund Statuses and Next Steps

After checking an ERC refund status, understanding the various meanings is important for determining next steps. Common IRS refund statuses include “Received” (IRS has the return and is processing), “Under Review” (claim requires scrutiny, causing delays), “Approved” (refund validated), and “Refund Sent” (payment issued).

Manage expectations regarding processing times, as ERC refund processing has experienced significant backlogs. While the IRS aims to process returns efficiently, some businesses report waiting months to over a year. The IRS recently resumed processing some claims after a temporary moratorium, but delays remain possible.

If a refund is significantly delayed or inquiry yields no clear information, further action may be required. The IRS may issue notices, such as requests for additional information or adjustment notices. Promptly respond to these with accurate details to avoid further delays. ERC refunds for Form 941-X claims are typically mailed checks, often with a Notice CP210.

For complex situations or persistent delays, consult a qualified tax professional. If delays cause financial hardship, consider contacting the Taxpayer Advocate Service (TAS), an independent IRS organization that helps resolve problems. Maintain diligent records of all communications and submissions.