September 11th 2023.
Are you relying on your Employee Retention Credit refund claim to support your business operations? If so, you might be wondering, “Where’s my refund?”
Unfortunately, the Internal Revenue Service doesn’t provide an online tool to check the status of ERC refunds the way it does for personal income tax refunds. Some websites may state that you can check your status online, but the IRS hasn’t confirmed that this is possible.
The most direct way to check your IRS ERC refund status is to call the IRS at 1-877-777-4778. It’s also the only way to check if you filed independently. Be prepared to provide some important information such as your legal name, filing status, federal identification number, relationship to the business, the business’s postal address, year of formation, and the type of tax return filed for the firm.
If you’ve hired a consultancy firm or third-party ERC filing service to file your amended 941x and claim the credit, you can contact the service to get a status update.
However, getting ahold of an IRS representative for information on your refund status can be difficult due to long hold times. You can also try calling the IRS Business Specialty & Tax Line at 1-800-829-4933 if you have difficulty reaching a live agent.
It may also be difficult to get an update if you’ve only recently sent in your Form 941-X. The IRS is dealing with a backlog of unprocessed payroll tax returns and manual processing due to the complexity of ERC refunds and form 941x. As such, the timeline for the IRS to process refund requests is 9-12 months.
If your request is approved, you will usually receive a check for the refund amount mailed to your business address on file. This may be accompanied by Notice CP210 which provides information about your refund and any discrepancies between the check amount and the refund, if any.
Unfortunately, the IRS does not provide an expedited process. Once you file, you must wait until your check shows up in the mail, which could take up to or over a year with the current delays.
If you need the funds sooner, you can consider ERC loans or advances. Several financial institutions offer this, but you’ll have to pay either interest or fees to access the funds much sooner, usually in a couple of weeks. Keep in mind that you’ll have to reconcile the advance against the actual ERC at the end of the quarter.
To request advance payments for ERC through United Capital Source, first file for your ERC with the IRS and make sure your Form 941x is error-free. Then, gather the necessary documents. Ensure you fully understand the advance payment policy before signing over ownership of the credit.
Many small business owners are relying on their Employee Retention Credit refund claim to support operations. Whether you're trying to fuel growth or get caught up on debt incurred during the pandemic, the money could be a much-needed lifeline. As a business owner, you might be wondering "where's my refund?"
The Internal Revenue Service doesn't provide a convenient online tool to check the status of ERC refunds the way it does for personal income tax refunds. Some online resources state you can check your status online at the IRS website, but the IRS hasn't confirmed businesses can track Employee Retention Credit refunds online.
The most direct way to check your IRS ERC refund status is to call the IRS at 1-877-777-4778. If you filed independently, it's also the only way to check. However, you might have difficulty getting ahold of an IRS representative for information on your refund status. Many business owners have mentioned long hold times when trying to contact the IRS. You can also try calling the IRS Business Specialty & Tax Line at 1-800-829-4933 if you have difficulty reaching a live agent.
In addition, an IRS agent can only give you a status update if it's processed your Form 941-X. If you've only recently sent it in, it might not have arrived or been entered into the system. Be prepared to provide identifying information, such as your legal name, filing status, federal identification number, your relationship to the business, the business's postal address, year of formation, and the type of tax return filed for the firm.
If you hired a consultancy firm or used a third-party ERC filing service to file your amended 941x and claim the credit, you can speak with them for information on the status of your refund.
The current timeline for the IRS to process refund requests is 9-12 months. The agency recently announced it's slowing down the ERC refund processing time to identify incorrect or fraudulent claims better. That means receiving your refund may take well over a year if you file today. The wait times are far from the IRS's initial 4–8-week processing time.
The IRS usually issues a check for the refund amount mailed to your business address on file. Notice CP210 will likely accompany the check. Unfortunately, the IRS does not provide an expedited process. Once you file, you must wait until your check shows up in the mail, which could take up to or over a year with the current delays.
Fortunately, several financial institutions offer ERC loans also called an ERC advance. This process essentially sells your ERTC ownership in exchange for an advance. You can access and use the funds to support and grow your business. When the IRS issues the employee retention credit refund check, it goes to the lender to repay the advance.
To request advance payments for ERC through United Capital Source, first, you must file for your ERC with the IRS. You can file independently, or our dedicated ERTC experts can help you complete the filing process and get the maximum credit possible. Then, you must gather all your documents. Keep in mind, these options require paying either interest or fees. However, it does mean getting your funds much sooner, typically in a couple of weeks.
Ensure you fully understand the advance payment policy before signing over ownership of the credit. Make sure you're aware of the pros and cons of getting your refund sooner and the need to reconcile the ERC advance against the actual ERC at the end of the quarter.
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