The IRS has begun processing Employee Retention Credit (ERC) claims received before the September 2023 moratorium, with a backlog of 1.4 million claims totaling over $86 billion. Despite approving 28,000 claims, the IRS has disallowed 14,000, reflecting a significant denial rate. The IRS is focusing on high-risk claims, some of which have already received denial letters, and is continuing its moratorium on new claims to prevent an overwhelming influx. Additionally, the IRS has hinted at possibly reopening its voluntary disclosure program and continues to offer a withdrawal program for taxpayers with questionable claims. Taxpayers are advised to consult with tax professionals and prepare documentation in case of an audit or appeal.

Read the full article at accountingtoday.com on how these developments could impact your business's ERC claims and what steps you should take next.