To check the status of your Employee Retention Credit, you can contact the IRS by calling the amended returns helpline at 800-829-4933. Specialists can provide assistance to your individual case. That being said, there is relatively little you can do in terms of follow-up. The IRS is processing millions of applications for Employee Retention Credit, so naturally, there are delays of several months before ERCs are approved and processed.
941x processing time
In addition, changes in the law allowed employers to file amended 941x returns on paper. These must be hand-processed by specialists at the IRS. Ironically, the IRS is experiencing what every company is facing — a labor shortage for critical jobs. Unfortunately, this compounds the delay to the employer awaiting their credit.
If you have submitted the appropriate 941-x forms to the IRS and are awaiting approval of your credit, you should reach out to a professional tax advisor who can help guide you through this process. They will be able to coordinate with the IRS on your behalf and make sure that everything is processed correctly and promptly. If it has been more than six months since you submitted your application, speak to a professional tax advisor as soon as possible.
Furthermore, the IRS may contact you for additional information related to your Employee Retention Credit application. It is important that you respond promptly and provide them with any requested documentation to ensure that your ERC is processed quickly and accurately.
Where is My ERTC Refund?
Aside from calling and speaking to a specialist as we mentioned, you can visit the IRS website for general information on program processing updates. As it can take some time for the IRS to process the amended 941x with the Employee Retention Credit, please be patient and reasonable with an expectation for processing time.
Estimates vary between 12 weeks and 10 months for your application to be completed and credit provided by the IRS. If your amended quarterly 941x with an ERC credit over $100,000, it generally receives greater review than amended returns with smaller credit claims, so a longer processing time is to be expected.
You will need to verify your identity so be prepared with your social security number, Tax ID, and tax return so the representative can discuss the status with you.
Can I track my ERC tax credit online?
Unfortunately, the IRS does not have a system for tracking amended 941x returns. You can call the IRS helpline for amended tax returns to find out if your amended return is being processed. You can also contact your accountant or tax advisor for additional details on the status of your company’s employee retention credit.
Can you file retroactively?
Yes you can file an amended quarterly tax return 941x to claim the Employee Retention Credit retroactively. However, you should be aware that the credit is available only for wages paid after March 13, 2020, and before Septembrer 30, 2021. The amount of credit varies per quarter in 2020 and 2021, as we discussed in our blog at.
How should I follow up on receiving the credit?
To check on the status of your Employee Retention Credit, you can contact the IRS directly or contact the ERC specialist who filed your application. American Tax Financial keeps our clients updated as we receive updates on your application as it makes its way through the process.
Can I take the ERC more than once?
Yes, you can take the Employee Retention Credit multiple times. However, you must meet the eligibility requirements for each quarter in which you take the credit. Be sure to review the information provided by the IRS regarding eligibility and calculation of the employee retention credit to ensure that your company is taking advantage of all available credits.
What is the employee retention tax credit and how does it work
The ERTC is a tax credit for eligible employers that chose to keep their employees and pay out wages during the COVID-19 pandemic. The credit amount has changed as the program has evolved but it is now at a maximum of $26,000 per eligible employee’s wages. The credit is available for wages paid after March 13, 2020, and before September 30, 2021.
To be eligible for the credit, an employer must have a business that was put on hold either fully or partially due to the pandemic. If your business was affected by the orders from the government that closed or limited your ability to remain open or suffered because of other restrictions like travel and group meetings due to COVID-19 — and you have qualified W2 income wage earners during that period — then you are eligible for Employee Retention Credit.
Eligible employers can claim the credit on their quarterly employment tax return (Form 941). For more information on the employee retention tax credit, please see IRS Notice 2020-21. https://www.irs.gov/newsroom/faqs-employee-retention-credit-under-the-cares-act#eligibility
How to file an ERC and check the status
To file for an ERC, you will need to file Form 941 for each relevant quarter. For each quarter, you will need to include:
1. The number of eligible employees employed by your company during the quarter.
2. The total wages paid to all eligible employees during the quarter.
3. The amount of employee retention credit taken for the quarter.
If you have successfully filed Form 941 for each relevant quarter, your company’s employee retention credit will eventually be processed and released to you. If you have any questions about the status of your company’s employee retention credit, please contact your accountant or tax advisor.