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Understanding the Current State of the Employee Retention Credit (ERC) 

December 12, 2025
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Even with ongoing IRS changes and delays, one thing remains absolutely clear: the ERC is not cancelled. Valid ERC claims continue to be reviewed, processed, and paid. 

To give you a clear, quick snapshot, here’s where things stand: 

At a Glance: What You Need to Know 

  • The ERC program is still active — it has not been eliminated. 
  • IRS processing has resumed for many claims, and payment activity has increased in recent months. 
  • Delays remain, especially for claims filed around the 2023 moratorium.
  • Tax Status monitoring gives us visibility on when your check is processed or mailed. 

Where Things Stand With the IRS 

In September 2023, the IRS announced an immediate moratorium on processing new ERC claims filed after September 14, 2023, due to a surge in improper filings. 

IRS announcement: 
https://www.irs.gov/newsroom/irs-orders-immediate-stop-to-new-employee-retention-credit-processing-amid-surge-of-suspicious-claims 

Since then, the IRS has shifted into a phased processing approach: 

For ongoing clarity, the IRS maintains an ERC information page with eligibility rules, updates, and program status. 

IRS ERC resource page: Employee Retention Credit

Above all: 

The ERC has not been cancelled. 

If your claim is valid and filed on time, it remains eligible for review and payment. 

How Innovation Refunds Is Responding 

Our approach is grounded in a single principle: protect the customer while minimizing risk. As the IRS continues its review process, here’s how we’re supporting your ERC claim: 

  • Active Tax Status Monitoring 
    For customers with pending claims, we use Tax Status to track IRS updates, including when checks are processed or mailed. 

Sign Up for Tax Status 

  • Audit & Documentation Support 
    If the IRS requests additional documentation, we help customers connect with their tax professional to prepare, respond, and organize their materials. 
  • Legislative & IRS Monitoring 
    We watch for any changes that may impact processing timelines, eligibility criteria, or refund risk and notify our customers when they occur. 
  • Clear, Proactive Communication 
    We update customers promptly about developments that affect their claims. 

Our Commitment to You 

If you have a pending ERC claim, our team is here to assist you. 

We can help you: 

  • Review your claim status if you have tax monitoring
  • Understand current IRS timing  
  • Prepare for potential documentation requests 
  • Stay informed through the IRS review process 

Your ERC is still active, and we’re committed to seeing your claim through. 

If you have questions or want a personalized claim review, contact our team anytime.