GovConBiz with Linda Rawson

Employee Retention Credit Delays


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In this episode of GovConBiz, host Linda Rawson discusses the significant delays in processing Employee Retention Credit (ERC) claims by the IRS, causing financial strain to small businesses. The ERC, part of the CARES Act of 2020, was meant to help businesses retain employees during COVID-19. Fraudulent claims have led to increased IRS scrutiny and processing delays, with a reported 1.2 million claims still pending as of late 2024. Although efforts are being made to address the backlog, the IRS faces challenges, including resource constraints, complexity of claims, and reduced workforce. Linda shares real fraud cases, highlights the impact on small businesses, and offers advice for those waiting for their ERC claims.

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