Many of our clients have been bombarded with calls and emails regarding the Employee Retention Credit (ERC), even if they don’t appear to qualify. In response to this situation, we want to bring your attention to a recent update from the IRS.

The IRS has just announced a crucial step to protect taxpayers and businesses from the increasing threat of ERC scams. They have announced an immediate halt on the processing of new ERC claims until at least January 2024. This decision was made due to several factors, including a surge in questionable claims, concerns raised by tax professionals, and the continued aggressive marketing of the credit to individuals and businesses who do not meet the eligibility criteria.

The IRS also issued a warning to businesses to be on the lookout for the “wildly aggressive” marketing of misleading or improper ERC claims targeting ineligible taxpayers. The warning was accompanied by a printable version of its ERC checklist that tax preparers can use to explain eligibility for the credit to their clients.

Key details

Temporary Stop

The IRS has suspended the processing of new ERC claims, effective immediately. This measure is aimed at preventing further fraudulent claims and safeguarding the tax system’s integrity.

Existing Claims

Current ERC claims will still be processed with increased inspection, leading to longer processing times.


Businesses are urged to be cautious of aggressive marketing for improper ERC claims targeting ineligible taxpayers. Organizations must exercise caution and verify their eligibility before pursuing the credit.

Helpful Resource

The IRS has also provided a printable version of its ERC checklist, which tax preparers can use to educate their clients about ERC eligibility. This tool will assist in ensuring that only eligible taxpayers access the credit.

This temporary pause in new ERC claims will help protect businesses and taxpayers from potential scams and misuse of the ERC program. We encourage all our clients and fellow professionals to stay informed and adhere to the IRS guidelines to ensure compliance and prevent accidental involvement in fraudulent activities.


Stay compliant, stay safe!

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