IRS Won’t Process New Employee Retention Tax Credit (ERTC) Claims

Due to an alarming onslaught of ERC scams and fraud, the IRS has stopped processing new employee retention tax credit claims.

IRS building
(Image credit: Getty Images)

Due to an increase in ERC tax credit scams and fraud and to protect honest business owners, the IRS will not process new employee retention credit (ERC) claims for the foreseeable future. The moratorium on new ERC claims processing was announced last fall by IRS Commissioner Danny Werfel in response to concerns raised by tax professionals, the media, and the agency about scams surrounding the pandemic-era tax credit.

"The IRS is increasingly alarmed about honest small business owners being scammed by unscrupulous actors, and we could no longer tolerate growing evidence of questionable claims pouring in," Commissioner Werfel said in a release. "The further we get from the pandemic, the further we see the good intentions of this important program abused,” Werfel added.

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Kelley R. Taylor
Senior Tax Editor,

As the senior tax editor at, Kelley R. Taylor simplifies federal and state tax information, news, and developments to help empower readers. Kelley has over two decades of experience advising on and covering education, law, finance, and tax as a corporate attorney and business journalist.