If you have been keeping abreast of news surrounding the Employee Retention Credit (ERC), you might be aware that instances of fraud have surfaced. Concerns have been raised regarding the processes some ERC processors have utilized, potentially leading to fraudulent claims. Here's what you need to know:

The rush to claim ERC tax refunds has unfortunately seen its share of less-than-honest practices. Some ERC processors have been accused of altering documents or misrepresenting facts to illegitimately boost the amount claimable under the scheme.

We recognize your concerns, and we wish to emphasize how our process stands apart.

Unlike many other companies that rely on CPAs or accountants, we engage independent, third-party tax attorneys to determine eligibility.

We strive to eliminate the risk of fraud in our ERC processing, ensuring that you receive diligent, honest service while capitalizing on the ERC benefits to which you are rightfully entitled.

Our commitment is not just about processing your claims; it's also about upholding integrity and providing you with peace of mind throughout the process. When it comes to ERC, we believe in doing things right.

If your CPA is requesting backup information regarding your Employee Retention Credit (ERC) claim, you may need to provide detailed documentation and calculations pertaining to your claim. Here’s what you can do:

1. Contact Your Independent Tax Preparer: The first step is to reach out to the independent tax preparer who prepared your ERC application. They should have the information your CPA is requesting.

1. Check Your Records: If you have copies of the documents you provided for the ERC claim, organize them so they are readily available for your CPA to review. This could include payroll reports, financial statements, employee headcount records, and any correspondence with the IRS relevant to the ERC claim.

1. Get in Touch with Us: Please contact us if you no longer have the contact information for your independent tax preparer.
   

Remember, it's crucial to keep detailed records to substantiate your ERC claim.

If you've received an IRS letter about the Employee Retention Credit (ERC), it's natural to have questions about what it means and what actions you should take. Here are the steps you can follow for clarification and to address the situation:

1. Understand the Letter: Take the time to read the letter carefully. The IRS will typically explain the reason for the notice, what they may need from you, or if there are any changes to your ERC claim.

1. Contact Your Independent Tax Preparer: Since Innovation Refunds referred you to an independent tax preparer who calculated and filed your ERC claim, they will be the most knowledgeable about your specific case. They are experienced in dealing with ERC claims and can provide insight into any IRS correspondence regarding your circumstances.

1. Take Timely Action: It's important to respond to any IRS letter by the date specified in the correspondence. Failure to do so may result in delays or additional complications.

1. Contact Innovation Refunds If Necessary: If for any reason you're unable to remember who your independent tax preparer is or how to get in touch with them, you can reach out to Innovation Refunds. We will assist you in reconnecting with your independent tax preparer.
   

Remember, receiving a letter from the IRS does not automatically mean something is wrong. It could be a routine inquiry or request for additional information. With prompt attention and professional guidance from your independent tax preparer, you can address the IRS notice confidently.

For further information or if you're unsure how to proceed, please get in touch with your independent tax preparer directly to ensure that IRS concerns are addressed.

To monitor the progress of our customers’ claims, we recommend enrolling in the Tax Guardian monitoring service. This service allows us to keep you informed about the status of your claim throughout the processing stage.  

We continue to pay close attention to any further updates from the IRS concerning the ERC program and will adapt our practices accordingly to safeguard the interests of our customers.

Please refer to the official IRS website for the most up-to-date information. If you have questions regarding your individual ERC claim, please consult with your independent tax preparer.

Yes, the IRS is actively processing Employee Retention Credit (ERC) claims. Clients have been receiving their refunds since January 2024, following the September 2023 moratorium; however, it is important to note that while refunds are indeed being issued, the number of processed claims since the moratorium remains relatively low.

The IRS is working through the backlog of ERC claims, and while progress is being made, applicants are encouraged to remain patient as the processing of these claims may take some time. If you have submitted a claim and are waiting for your refund, we encourage you to sign up for Tax Guardian, a platform that allows us to monitor the status of your claim. For more information or to sign up, please contact the Innovation Refunds support team.  

For the most accurate and up-to-date information, always refer to the official IRS website or consult with your tax preparer, as they will provide guidance specific to your situation.

The diverse timing of IRS tax refunds, particularly concerning the Employee Retention Credit (ERC), can be traced back to multiple factors that individually or collectively influence the processing timeline.

In addition to the sheer volume of applications that the IRS has received, the complexity of evaluating eligibility for the ERC poses a challenge, as it requires thorough verification to ensure taxpayers meet the specific qualifications. This often necessitates additional review time to confirm the accuracy of the claimed amounts.

Furthermore, IRS's anti-fraud measures, heightened for credits like the ERC due to their potential for misuse, involve detailed scrutiny to deter and detect fraudulent activities. These measures, while essential for maintaining the integrity of the tax system, can naturally extend the duration needed to finalize and issue refunds. Considering these aspects, the IRS's approach to handling ERC claims is designed to balance efficiency with thoroughness, ensuring that only eligible taxpayers receive the correct credit amounts while striving to minimize potential fraud.

For taxpayers or businesses seeking more comprehensive details about the Employee Retention Credit and its requirements, the IRS provides a resourceful page dedicated to this purpose. You can visit IRS Employee Retention Credit Guide for in-depth information and updates.

We understand your concern about not yet receiving your expected Employee Retention Credit refund. As you may have heard, in September 2023 the IRS announced a moratorium on processing new ERC claims. This pause will enable the IRS to implement further safeguards against improper claims.

While existing claims filed before the moratorium will still be processed, the IRS cautions it is taking more time to ensure compliance. Processing could extend up to 180 days or longer in some cases. For the most up-to-date information, we encourage you to check the official IRS website. Updates will also be posted on our company website and via email correspondence as they become available.