When Will I Get My ERC Check? Tracking Status & Delays

The Employee Retention Credit (ERC) provided financial relief to businesses during the COVID-19 pandemic. Many businesses applied for this refundable tax credit and are now awaiting their refund. Understanding the process and factors affecting delivery is a common concern. This information clarifies the ERC refund timeline and provides guidance on tracking its status.

Understanding ERC Check Delays

Businesses awaiting their Employee Retention Credit (ERC) refund checks often experience significant processing delays, with current estimates ranging from several months to over a year. The original anticipated timeframe of six to eight weeks is no longer accurate due to factors impacting IRS operations.

The primary reason for these extended wait times is the substantial backlog of claims at the IRS. The agency received a high volume of amended payroll tax returns, specifically Form 941-X, creating a considerable inventory of unprocessed returns.

Increased scrutiny of ERC claims also contributes to processing delays. The IRS has intensified its review efforts to combat fraud and ensure eligibility, meaning many claims undergo more thorough examinations.

The complexity of individual claims also influences processing speed. Claims larger in value or involving intricate eligibility scenarios require additional review time. Errors, missing documentation, or discrepancies within a submitted claim can flag it for manual review, significantly prolonging processing.

The IRS implemented a moratorium on processing new ERC claims to address concerns about fraudulent claims and refine procedures. The IRS has since adjusted this moratorium, processing some claims filed between September 14, 2023, and January 31, 2024, prioritizing both high- and low-risk submissions.

IRS Processing Stages

Once an Employee Retention Credit (ERC) claim is submitted, it enters a multi-stage process within the IRS system. The initial step involves receiving the amended payroll tax return, typically Form 941-X, and its data entry. It is advisable to send these forms via certified mail with a return receipt to confirm delivery.

Following data entry, claims undergo an automated review for completeness and consistency. This screening identifies basic errors or missing information that could prevent further processing. Claims that pass proceed to the next stage, while others may be flagged for closer examination.

If a claim triggers specific criteria, it may be routed for a manual review or an in-depth audit. During this stage, IRS agents examine submitted documentation, cross-reference information, and may request additional details. Businesses might receive IRS notices requesting clarification or further substantiation.

After a thorough review, if the claim is deemed valid, the eligible credit amount is calculated and approved for payment. This approval signifies the IRS has verified the claim’s accuracy and eligibility. The process then transitions from the IRS to the U.S. Treasury for final issuance of funds.

The approved payment request is transmitted to the U.S. Treasury, which is responsible for issuing refund checks. The Treasury processes the payment, then physically mails the check to the business’s address on file with the IRS.

Monitoring Your Refund Status

Once your Employee Retention Credit (ERC) claim is submitted, monitoring its status can provide insight into its progress. While no dedicated online tool exists for ERC refunds, taxpayers have a few methods to track payment. The IRS’s “Where’s My Refund?” tool is primarily for individual income tax refunds (Form 1040).

For business tax returns and refunds, the IRS advises contacting their Business and Specialty Tax Line at 800-829-4933. When calling, have your Employer Identification Number (EIN) and relevant tax return information available to help the representative locate your claim.

Businesses should review any correspondence received from the IRS. Notices or letters often contain updates regarding a claim’s status, including requests for additional information or notification of issues. Responding to these communications can prevent further processing delays.

While some online resources suggest checking your IRS online account for status updates, the most direct approach for business refunds remains contacting the IRS by phone. Be prepared for long wait times, as call volumes can be high. Speaking with a representative can sometimes provide more specific details than automated systems.

Addressing Issues with Your Payment

If your Employee Retention Credit (ERC) check experiences significant delays or other issues, taking proactive steps is important. It is advisable to wait until the estimated processing time has passed before initiating further action, allowing the IRS time to work through its backlog.

If your ERC check has been issued but not received, or if it was lost or stolen, you can initiate a refund trace with the IRS. For businesses, this involves submitting Form 3911, “Taxpayer Statement Regarding Refund,” which can be mailed to the IRS.

The IRS will investigate the refund’s status. If the check has not been cashed, the IRS will cancel the original and issue a replacement. If the check was cashed, the Bureau of the Fiscal Service (BFS) will send a claim package, including a copy of the cashed check, for review to determine if a replacement can be issued. This process can take several weeks or months.

Should you receive an ERC refund check for an incorrect amount, contact the IRS to resolve the discrepancy. This may involve disputing the amount or filing an amended Form 941-X to correct errors on your original claim.

If the IRS has no record of your submitted ERC claim, you may need to provide proof of mailing and resubmit the necessary forms. Maintaining thorough records of your original submission, including certified mail receipts, is valuable. For complex issues, audits, or if direct contact with the IRS is unsuccessful, consulting with a qualified tax professional, such as a CPA or tax attorney, is recommended.