The Employee Retention Credit (ERC) is a refundable tax credit introduced as part of the CARES Act and expanded by subsequent legislation. While many businesses have received their ERC refunds, others are still waiting. That has many people wondering:  

  • How long do ERC refunds take? 
  • What cause delays? 
  • How can I learn the status of my refund?  

As of February 2023, the IRS had approximately 651,000 unprocessed Forms 941-X, the Adjusted Employer’s Quarterly Federal Tax Return or Claim for Refund. The good news is refunds typically take 6-8 weeks to process after employers have filed for them. However, businesses have reported waiting as much as twelve months for their ERC refunds. 

So, how long do ERC refunds take? The actual time it takes to receive your ERC refund may vary depending on several factors: 

  1. The IRS processes and approves small refund amounts faster than larger ones.  
  2. Errors on tax returns will cause delays, so double-check your return for accuracy.  
  3. Missing or incomplete information and the need for additional review or verification will also cause delays. 
  4. Some 941-X cannot be processed until the related 941s are processed. 
  5. The agency is scrutinizing claims more than previously, sometimes reviewing them twice, because of the rise in fraudulent claims.  

Fortunately, interest is paid on ERC refund amounts starting from when the refund was due. So, if your refund is delayed, you may be entitled to additional interest payments. 

To check on the status of your refund, you can either call the IRS helpline at (800) 829-4933 or check the status online using the IRS’ “Where’s My Refund?” tool. You’ll need your Social Security number, Employer Identification Number, and your tax return information readily available. 

If you haven’t taken advantage of the ERC refund, reach out to Miami CFO for more guidance on the filing process. Schedule a meeting with us today by clicking on this link: