IRS Delays COVID Claims Leaving Small Businesses in Crisis
IRS Delays and Their Effects on Small Businesses
The IRS has faced significant delays in processing Employee Retention Tax Credit (ERTC) claims, which is critical for small businesses. With over $100 billion in owed refunds, many businesses are left in limbo. The Biden administration's inaction further exacerbates the situation.
Background on the ERTC Program
The ERTC program, established during COVID-19, aimed to incentivize businesses to keep employees on payroll amidst pandemic-related disruptions. With ongoing processing issues, many businesses have voiced frustration over long wait times and unfunded claims.
Current Situation and Impact
- The IRS is processing only a fraction of the 1.4 million claims backlog.
- Claims deemed low risk have seen limited progress, leaving many businesses in the dark.
- Ongoing delays pose severe risks to the viability of many small businesses.
Call for Action
Members of Congress, including Bob Good, urge the IRS to provide clarity on processing timelines and transparency regarding the backlog. Immediate action is critical for business owners relying on these funds for survival.
This article was prepared using information from open sources in accordance with the principles of Ethical Policy. The editorial team is not responsible for absolute accuracy, as it relies on data from the sources referenced.