How to Check the Status of the Employee Retention Credit

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Like many employers, the IRS has faced employee staffing challenges since the onset of the pandemic. Like private sector employees, many government employees have been reluctant to return to an office or have decided to pursue another line of work entirely. The Great Resignation has affected both the private and public sectors.

Because of staffing issues, dealing with the IRS is much more time-consuming than it was pre-pandemic. Saying that individuals and businesses chasing their tax refunds are frustrated is an understatement.

While individual taxpayers are seeking answers concerning their tax refund check based on their personal tax return, many businesses are looking for a status update on their Employee Retention Credit (ERC) refund.

If you’re unfamiliar with the ERC, it’s a refundable tax credit businesses can claim on qualified wages, including health insurance costs, paid to employees in 2020 and 2021 during the COVID-19 pandemic.

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Checking the status of your ERC refund

If you’re understandably becoming impatient and are tired of waiting to hear something from the IRS concerning your refund, there are several steps you can take to check your ERC refund status.

First, you can call the IRS directly at (877) 777-7748. Prepare for a long hold time that often exceeds 90 minutes, if you can connect at all. Many callers find that the IRS’ automated phone system is so overloaded with calls that their call can’t even be connected.

An alternate number you may try is (800) 829-4933. Again, prepare for a long hold time. Try to contact the IRS by phone before 8:00 am ET to minimize your hold time.

If you are fortunate enough to connect with an IRS representative by phone, be sure to have your EIN (Employer ID Number), your position with the company, postal address, year of corporate formation, and the kind of tax return filed for the firm (1120, 1120-S, 1065, etc.)

Unfortunately, there isn’t much you can do to check your refund status online. The IRS does have a page on its website, but don’t get your hopes up. It only applies to individual tax returns.

How long will it take to get your refund?

Initially, the IRS was scheduled to get refunds out between six weeks to six months after Form 941-X was filed. This window has expanded as the IRS has fallen further behind. You can now plan on a nine to twelve-month turnaround time–currently.

Refunds above $1 million may face a lengthier delay because of the additional investigation time needed before a refund can be issued.

In fairness, the IRS is doing what it can to speed the process up. They’re redirecting tax returns and taxpayer interaction from locations with inadequate staffing levels to those that have more employees available to help alleviate the backlog.

Questions about the ERC?

If you have questions concerning the ERC, including your eligibility to receive a credit of up to $26,000 per employee, contact Bottom Line Concepts today. We’ve helped just under 20,000 businesses recover over $3 billion in credits.

Schedule your no-cost 15-minute consultation call with us today. Let’s talk about eligibility, amounts, time frames, and more.

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