Warner, Kaine express concerns about ERC-claim processing delays

Virginia Senators Mark Warner and Tim Kaine are voicing concern about delays in processing of Employee Retention Credit claims by the Internal Revenue Service. Warner and Kaine believe the backlog of claims is causing confusion and financial uncertainty for many businesses, nonprofits and other taxpayers.

“While we applaud the work IRS has done since June 20th to root out improper claims and identify valid claims, we continue to hear from an increasing number of Virginians frustrated by the lack of clarity on when their individual claims will be adjudicated,” the senators wrote.

The ERC was created in response to COVID-19 to incentivize employers to keep their employees on payroll and off unemployment during the height of the pandemic, but the IRS processing delays mean that many taxpayers are still waiting to receive the tax credits they believe they are due.​

“As you know, businesses and other organizations need answers about their ERC claims to determine whether to undertake investments in operations, workforce, and capital projects,” Warner and Kaine wrote. “Unfortunately, many of our constituents are telling us they cannot make informed decisions because they have no knowledge as to when and if their claims will be processed. Many Virginia organizations with ERC claims have been waiting a year or more with no response whatsoever from the agency. Despite our best efforts to advocate on behalf of these constituents, engagement from our offices have similarly yielded little to no clarity on when claims will be processed. Simply put, this is unacceptable.”

The Senators are urging the IRS to take steps to address the issue and expedite the processing of ERC claims.

“We have made numerous inquiries on behalf of Virginians and receive new requests frequently,” Warner and Kaine wrote. “How does the agency intend to partner with our offices to ensure that these inquiries are reviewed and addressed in a timely manner?​”