How long does it take to get an ERC refund? Ultimately, this depends on the complexity of the return. But generally, you can expect to get your refund within three weeks after filing.
In many cases, refunds are issued even faster.
If you’re expecting a refund for an itemized deduction, it could take longer due to the IRS needing to review your return. In addition, if the Internal Revenue Service (IRS) needs to verify more information or requires a special review of your return, this could delay your refund.
If you have any questions about the status of your return or ERC refund, you can contact the IRS directly. The agency has a variety of resources and tools to help you understand the process and get your refund as quickly as possible.
If you need professional assistance, the experts at Northstar are ready to guide you. Our CPAs understand the refund process and can help you navigate the system to get your money as quickly as possible.
Keep reading to learn more about what to expect while awaiting your ERC refund now.
Employee Retention Credit Refund Processing Delays
The Employee Retention Credit (ERC) was introduced as a way to allow eligible employers to retain their employees during the COVID-19 pandemic. While the credit has been a valuable resource for many employers, some have experienced delays in receiving their refunds. This is due to the high volume of claims received by the IRS, as well as the complex nature of the credit itself.
The IRS has advised that it may take several months for eligible employers to receive their refunds. But the good news is that the agency has also said it will prioritize these claims and refund requests.
To expedite your ERC refund, you should ensure that your return is accurate and complete. You can also consider submitting your return electronically, as this can speed up the processing time.
If you’re still waiting for your refund, don’t worry – the IRS is working hard to process all claims and refunds as quickly as possible. And for any questions or concerns, you can contact the IRS directly or reach out to Northstar for assistance.
Loving this post? Make sure to check out our other article about how to calculate ERC credit before you leave!
How Will I Receive My Employee Retention Credit?
Employers eligible for the ERC will receive their refund through the same method they use to pay their employment taxes. For example, if an employer pays their employment taxes by paper check, their refund will be sent to them via paper check.
If an employer pays their employment taxes electronically, their refund will be deposited directly into their bank account. This is why it’s important to make sure your banking information is up-to-date with the IRS.
Watch Out for Suspicious Third-Party Claims
Unfortunately, there have been instances of third-party companies claiming to be able to expedite the processing of ERC refunds. These companies often charge a fee for their services, but they do not have the ability to speed up the refund process.
Employers should be cautious of these companies and should only deal directly with the IRS or a trusted financial services provider to ensure the security of their personal and financial information.
How Do I Check the Status of My ERC Refund?
The IRS provides a phone number for individuals to check the status of their ERC refund. The number is 800-829-1954.
Employers can also check the status of their refund by visiting the IRS website and using the “Where’s My Refund?” tool. This tool requires the employer to provide their Social Security number, filing status, and the exact amount of their refund.
The IRS recommends that employers wait at least 45 days after filing their return before checking the status of their refund.