Today, Congressman David G. Valadao sent a follow-up letter to IRS Commissioner Danny Werfel concerning delays in processing Employee Retention Tax Credit (ERTC) claims. This program was established during the COVID-19 pandemic to assist businesses in retaining employees. Earlier this year, Congressman Valadao had reached out to Commissioner Werfel to address issues related to the processing and payment of these claims.
Congressman Valadao emphasized the frustration among small business owners due to a lack of communication from the IRS: “Businesses with legitimate ERTC claims deserve prompt processing and payment of their claims. Unfortunately, the IRS has not yet communicated the status of these claims or outlined the process for the analysis needed to complete their processing and payment,” he stated.
Despite progress made by the IRS since Valadao’s initial correspondence, many small businesses are still awaiting claim resolution. He noted, “The ERTC program was designed to provide crucial relief to businesses during the pandemic. While the steps the IRS has taken in recent months are essential for addressing these claims, I am concerned that the IRS response has been inadequate.”
In his letter, Congressman Valadao sought answers regarding current measures being taken by the IRS:
– Will there be an extension of the 30-day period for taxpayers who received a disallowance letter?
– How is the IRS handling claims with moderate risk levels and communicating their status?
– Of 50,000 low-risk claims announced in August as moving into processing, how many have been paid?
– Is there collaboration between the IRS and Taxpayer Advocate Service on ERTC cases?
The full text of Congressman Valadao’s letter is available for public reading.
