How to Check the Status of Your ERC Refund
Verify your Employee Retention Credit refund status with clear guidance. Understand the process and what to anticipate for your ERC payment.
Employee Retention Credit (ERC) is a refundable tax credit that businesses could claim for retaining employees during the COVID-19 pandemic. Many businesses filed amended employment tax returns, such as Form 941-X, Adjusted Employer’s Quarterly Federal Tax Return or Claim for Refund, to claim this credit. After filing, businesses often seek to determine the status of their anticipated refund. This guide explains how to monitor your ERC refund’s progress.
Required Information for Status Checks
Before checking the status of an ERC refund, gather specific information. The Employer Identification Number (EIN) is required for any inquiry. You will also need the exact tax period for which the credit was claimed, typically a specific quarter and year. The amount of the credit claimed on your Form 941-X is also necessary.
The date you filed your Form 941-X or other relevant forms is important for the IRS to locate your submission. Having a copy of the filed Form 941-X, with supporting documentation, can provide all these details.
How to Check Your ERC Refund Status
Checking the status of an Employee Retention Credit refund typically involves direct communication with the Internal Revenue Service (IRS), as amended returns like Form 941-X are not generally tracked through the “Where’s My Refund” online tool. When calling, have your Employer Identification Number (EIN), the specific tax period for which the ERC was claimed, and the date your Form 941-X was filed readily available.
You can reach the IRS Business and Specialty Tax Line for assistance. Representatives can provide updates on your amended return’s processing and refund status. While online accounts may display certain tax information, they usually do not provide real-time tracking for amended return refunds. However, reviewing your IRS online account transcript can sometimes reveal processing updates or notices related to your amended return.
The IRS may also send correspondence or notices regarding your amended return, which could provide status updates or requests for additional information. Review any mail received from the IRS carefully, as it may contain important details about your refund’s progress. Be prepared to answer security questions to verify your identity when speaking with an IRS representative.
Typical Processing Timelines
The Internal Revenue Service processes amended returns, including those filed for the Employee Retention Credit. General processing times for Form 941-X can range from several weeks to many months, often exceeding 20 weeks. Due to the high volume of ERC claims, processing times for these refunds have been significantly longer than standard amended returns. It is not uncommon for businesses to experience wait times that extend beyond six months, sometimes even reaching over a year.
The IRS has acknowledged backlogs in processing ERC claims, and these delays can fluctuate based on current operational demands. The timeline can also be affected by whether the claim is selected for further review or audit, which can extend the waiting period considerably. Businesses should anticipate a prolonged waiting period after filing their Form 941-X for ERC.
What to Do If Your Refund is Delayed
If your Employee Retention Credit refund has not arrived within the typical processing timelines, there are steps you can take to follow up. Begin by re-verifying that the expected timeline has passed, considering the extended durations often associated with ERC claims. When contacting the IRS, have all your pertinent information ready, including your Employer Identification Number, the specific tax period for the credit, and the filing date of your Form 941-X.
Common reasons for refund delays include the claim being selected for further review, potential errors on the submitted forms, or missing information. The IRS may also issue a notice or letter requesting additional documentation or clarification. Maintaining accurate records of your original claim, any correspondence from the IRS, and notes from previous phone calls is important.