Unexpected Employee Retention Credit Refund Delays

by | Dec 6, 2021

The IRS is experiencing continued delays

The IRS is currently backlogged with millions of unprocessed payroll tax returns due to the changes in COVID-19 safety protocols and the volume of Employee Retention Credit (ERC) refund requests.

As of November 17, 2021, the IRS posted that there are about 2.4 million unprocessed Forms 941 and approximately 400,000 unprocessed Forms 941-X. Additionally, the IRS advised that they will be processing all Forms 941 before they process the corresponding Forms 941-X. It is also rumored that the IRS may be processing 2020 payroll refunds before 2021 payroll refunds.

To check any new IRS status postings, visit: https://www.irs.gov/newsroom/irs-operations-during-covid-19-mission-critical-functions-continue and scroll down to “Filed a Tax Return”.

How long does it take to receive the ERC refund?

Previously it was expected that after the amended payroll reports have been filed, the IRS would issue refunds within six weeks to six months. We are now encouraging you to plan for a turnaround time of nine to twelve months.

How to check the status of your refund

To check the status of your refund, you can call the IRS at (877) 777-4778. Expect extended wait times. We recommend that the best course of action is to visit the IRS website. Unfortunately, we don’t expect there to be any new or additional information learned from a phone call conversation.

Bakes Takes Volume 1, Issue 8

This month’s Bake’s Takes presents three powerful reads that discuss overcoming anxiety in high achievers, traits of effective teams, and reasons why leadership teams fail. It provides actionable advice on how to avoid mental traps, foster healthy collaboration, and elevate mediocre teams to high performing ones. Dive in to gain a fresh perspective on leadership challenges and strategies.

Attestation Services: An Introductory Guide

In today’s business world, trust and transparency are non-negotiable. Discover how attestation services can enhance your company’s credibility by providing independent verification of your financial information. Read our essential guide to learn how these services can drive business success and foster stakeholder confidence.

What do You Want… Really?

How you plan for retirement today can significantly affect your future. This article explores the implications of current decisions on future outcomes, and how the KHA team can help align your actions with your aspirations. Let’s start shaping your future today.

Will your Business Last Beyond You?

Ensuring business longevity involves intentional succession planning. Explore how KHA’s Dynamic Business Advisory program helps you identify strategic gaps and build a lasting legacy. Are you ready to think generationally?

Bake’s Takes Volume 1, Issue 7

Dive into the world of strategic consulting with Jonny Baker’s “Bake’s Takes”, featuring a careful selection of insightful reads from the fields of team dynamics, conflict resolution, and decision-making. This edition explores the true meaning of teamwork, the importance of healthy conflict in management, and introduces the innovative “RAPID” decision-making method. A rich resource for leaders seeking to create vision, alignment, and execution.

Are you a CEO or a Firefighter?

Are you a business owner stuck in the firefighting mode, rushing from one crisis to another? Discover how KHA Strategic Consultants can help you transition from a reactive approach to proactive strategic planning.

Can You Attract Top Talent?

In the battle for top talent, 75% of companies struggle to fill positions, giving the onus to firms to differentiate themselves. This article outlines four key attributes successful firms possess.

Bakes Takes Volume 1, Issue 6

Explore the top three reads recommended by KHA Consulting’s Jonny Baker in this month’s Bake’s Takes. From understanding how new CEOs establish trust, to leveraging your strengths for greater impact, and spotting talent in the modern era, these articles offer essential insights for today’s leaders. Don’t miss out on these refreshing perspectives designed to push your thinking and enhance your leadership effectiveness.

Accounts Payable Strategies and Best Practices

Efficient accounts payable management isn’t just about paying bills—it can directly impact your business’s financial health and growth. From digital tools for invoice processing to robust internal controls for fraud prevention, this article covers everything you need to know.