How To Check Your ERC Refund Status
Have you claimed and filed your Employee Retention Tax Credit and are waiting to hear about its status? Find out the best way to check your ERC refund status.
As of 9/14/2023, the IRS has temporarily paused processing new employee retention tax credit claims due to a swell of ERC scams and questionable claims. Existing claims are still being processed and eligible businesses can still submit an ERC claim through reputable ERC specialists to be processed when the moratorium ends. Visit our full breakdown of the ERC pause for the latest information.
Once you’ve claimed the Employee Retention Credit, the next step is to wait on your ERC refund check from the IRS — but when will it arrive? After filing your amended quarterly returns, how do you check the status of your ERC refund? If you’re asking these questions, this post is for you.
We’re going to explore how to check the status of your ERC refund, ERC refund processing timelines, and potential delays in refund processing and how to avoid them. Keep reading to learn more about how to check your ERC refund status.
Table of Contents
How Do I Check My ERC Refund Status?
The best way to check the status of your ERC refund is by calling the IRS at 1-877-777-4778.
However, it isn’t guaranteed that you’ll be able to find out any information on the status of your ERC refund. Taxpayers have also reported long hold times, while others had difficulty getting a live person on the phone.
When you call the IRS, you will need to provide information to verify your identity. This may include your legal name, federal identification number, filing status, and additional info.
If you’re having difficulties reaching a live agent by phone, you can also try calling the IRS at 1-800-829-4933.
There have been some reports that you can track your ERC refund online. At this time, the IRS has not confirmed that ERC refunds can be tracked online.
The IRS’ “Where’s My Amended Return?” page is used to track Form 1040-X, while the IRS page “Where’s My Refund?” is used to track refunds from Form 1040. Merchant Maverick will continue to monitor news about the ERC and will provide updates if the IRS announces new ways to track ERC refunds.
What If I Used A Third-Party Company To Claim My ERC Refund?
Third-party ERC funding companies file Form 941-X on your behalf in exchange for a fee. Whether you have filed the 941-X or hired an expert to do it for you, the process is still the same. Therefore, you will need to contact the IRS by phone to learn more about the status of your refund.
You can also reach out to the company you hired to learn more about any potential delays, updated guidance from the IRS, and inquire about other funding options if you need cash today (more on that a little later).
How Long Does It Take To Receive The ERC Refund?
While every eligible small business owner should claim the ERC refund, it’s important to understand that this isn’t a fast funding solution. Taxpayers claiming the credit early in the process generally wait four to nine months to receive their refund checks from the IRS. The wait is even longer for those that waited to file, with timelines running 12 months or even longer to receive the ERC refund.
Why Are ERC Refunds Taking So Long?
According to the IRS, a backlog of amended returns is partially responsible for the delay. Unlike other tax forms, Form 941-X which is used to claim the ERC is a paper form that is mailed to the IRS — no eFiling is available. This contributes to a slower process, as each paper form must be manually processed. Since the ERC is quite complex, a specialized ERC team handles these claims. Add in the fact that the IRS has notoriously struggled with understaffing in recent years, and it’s not hard to see why ERC claims are delayed.
While you can’t directly speed up the ERC refund process, you can get an advance of your ERC funds with an ERC loan. Check out the best ERC loans for a lender that can get you your ERC funds in weeks, not months.
Is There A Way To Speed Up The ERC Refund Process?
Unfortunately, while ERC loans are an option, there’s no way to speed up the ERC refund process itself. Once your tax forms have been submitted to the IRS, all you can do is wait until your refund is processed and a check is issued.
If you haven’t yet claimed your ERC, the best thing you can do is ensure there aren’t any errors. This can further delay the process. Errors can include anything from miscalculations to leaving off a signature.
Check out our post that walks you through how to fill out Form 941-X to avoid these missteps. You can also hire a professional to file your claim for you. Start your search with our top picks for the best ERC tax credit services.
If you used a third-party company to claim your ERC credit, you can inquire about any ERC funding programs, and ERC advances that are available, such as ERC bridge loans. These loans may come at a high cost, so make sure to weigh out the pros and cons.
What Could Delay The Status Of My ERC Refund?
In addition to the amended return backlog and staffing issues of the IRS, there are other potential delays in receiving your ERC refund. This includes:
- Submitting a 941-X with missing information
- Numerical errors when calculating the ERC refund
- Very large ERC refunds
While you can’t speed the IRS along in processing your ERC refund, you can make sure that you complete your forms, calculate your ERC accurately, and are prepared to wait potentially a year or longer for delays outside of your control.
The Bottom Line On Checking Your ERC Refund Status
If you qualify for an ERC refund, you will get your funds — just know that it won’t be overnight. Understanding the timelines of ERC refund processing can help you set realistic expectations on when you’ll receive your check in the mail. It’s also important to understand that you may not be able to get the answers you seek when tracking your ERC refund. Patience is key.
These options can help you get the money you need to put back into your business while you wait on your ERC refund. Good luck!