How to Check the Status of Your ERC Refund
Track your Employee Retention Credit refund status with confidence. This guide empowers businesses to monitor their claim progress and understand next steps.
The Employee Retention Credit (ERC) was a government initiative providing a refundable tax credit for eligible businesses impacted by the COVID-19 pandemic. This credit encouraged employers to retain their workforce. Many businesses filed for this credit by amending their payroll tax returns, specifically Form 941-X, for applicable quarters in 2020 and 2021. A substantial number of businesses are currently awaiting their ERC refunds from the Internal Revenue Service (IRS). The process of receiving these refunds can be lengthy due to the high volume of claims and various IRS processing considerations.
Information Needed Before Checking
Before attempting to check the status of an ERC refund, gathering specific information is important. The Employer Identification Number (EIN) is a primary identifier for your business with the IRS. You will also need the business’s full legal name as it appears on official tax documents.
It is necessary to have the exact tax period(s) for which the ERC was claimed, typically specific quarters in 2020 or 2021. For each claimed period, the precise date the amended tax return, Form 941-X, was submitted to the IRS is also required. Knowing the claimed refund amount for each Form 941-X helps in verifying the information during inquiries. Any IRS notice numbers received related to your ERC claim can provide a direct reference point for IRS representatives.
Checking Your Refund Status Online
The IRS provides an online portal for business tax accounts, although direct ERC refund status tracking might not always be immediately visible through a dedicated “Where’s My Refund?” tool for businesses. You can access your general business tax account through the IRS website.
Once logged into your business tax account, you can typically view your tax records and account balance information. While a specific ERC tracker may not be universally available, reviewing your tax transcripts through the portal can sometimes offer insights into the processing of your amended returns. The system generally requires your Employer Identification Number (EIN) and other verifying business details to access your account information.
Checking Your Refund Status by Phone
If online methods do not provide sufficient information, checking your ERC refund status by phone is another option. The IRS Business and Specialty Tax Line can be reached at 1-800-829-4933. This line operates Monday through Friday, typically from 7 a.m. to 7 p.m. local time.
When calling, be prepared for potentially long wait times due to the high volume of inquiries. Have your Employer Identification Number (EIN), the business’s legal name, the tax period(s) for which the ERC was claimed, and the submission date of your Form 941-X readily available. The IRS representative will use this information to locate your specific claim and provide any available updates on its processing status.
Understanding Refund Statuses and Timelines
After checking your ERC refund status, you might encounter various messages or receive updates. Common statuses include “Refund Received,” indicating the IRS has acknowledged your claim, or “Under Review,” suggesting the claim is undergoing examination. A status of “Refund Approved” means the IRS has validated your claim, while “Refund Sent” confirms the refund has been issued.
ERC refund processing times can be extensive, often taking several months, or even over eight months, due to the substantial backlog of claims at the IRS. For example, some businesses have reported waiting anywhere from four to twelve months, or even longer. Each amended Form 941-X for quarterly claims is processed separately, which can further extend the overall timeline for businesses with multiple claims. Delays often stem from the sheer volume of submissions, the manual processing required for Form 941-X, and the IRS’s efforts to review claims for accuracy and legitimacy.
Next Steps for Delayed or Unidentifiable Refunds
If your ERC refund is significantly delayed beyond typical processing times or if the status remains unclear, there are further actions to consider. Generally, if more than six months have passed since you filed your Form 941-X and you haven’t received your refund, you might consider following up more aggressively. Persistent follow-up, such as monthly or bi-weekly calls to the IRS, can sometimes encourage movement on your application.
If the delay is causing significant financial hardship for your business, you may be eligible to contact the Taxpayer Advocate Service (TAS). The TAS is an independent organization within the IRS that assists taxpayers experiencing economic harm or unresolved tax problems through normal channels. You can reach TAS by calling their toll-free number at 1-877-777-4778 or by filing Form 911, Request for Taxpayer Advocate Service Assistance. The TAS can investigate your case, communicate with the IRS on your behalf, and potentially help expedite your claim, especially if financial hardship can be demonstrated.