How To Check The Status of Your ERC Refund Claim

The Employee Retention Credit (ERC) is a refundable tax credit that the US government introduced in response to the COVID-19 pandemic. It is designed to help eligible businesses offset the financial impact of the pandemic by providing a tax credit for certain wages paid to employees. If you have claimed the ERC refund for your business, it is important to check the status of your claim to ensure that it is being processed correctly and to identify any issues that may need to be addressed. 

This outline will discuss how to check your ERC refund claim status and the steps to follow for each method.

Ways to Check ERC Refund Claim Status

There are several ways to check the status of your ERC refund claim. The most convenient and efficient way is to do it online through the IRS website. However, you can also check the status by contacting the IRS by phone or mail. Let’s explore each of these methods in more detail.

Steps to Check ERC Refund Claim Status Online

1. Register for an online account with the IRS: To use the “Get My Payment” tool on the IRS website, you will need to register for an online account. To do this, go to the IRS website and click the “Create or view your account” button. Follow the instructions to create an account, which will require you to provide some personal information to verify your identity.
2. Access the Online Account: Once you have registered for an online account with the IRS username or ID, access the required information.
3. Enter the required information to check the status of your ERC refund claim: To check the status, you will need to enter some personal information, such as your Social Security number or tax ID number, your date of birth, and your mailing address. You will also need to provide the refund amount you are expecting. Once you have entered this information, click on the “Continue” button to view the status of your refund.

Steps to Check ERC Refund Claim Status by Phone

If you want to check the status by phone, follow these steps:

1. Call the IRS toll-free number for refund status inquiries: The toll-free number for refund status inquiries is 800-829-1954. Call this number to speak with an IRS representative who can provide your ERC refund claim status.
2. Provide the required information to the representative: To check the status, you must provide some personal information, such as your Social Security number or tax ID number, filing status, and the tax year for which you claim the refund. You should also have a copy of your tax return and any documentation related to your ERC refund claim in case the representative needs to review it.

The IRS representative will be able to tell you the status, including whether it has been processed, the date, and the payment method (direct deposit or check). If there are any issues with your claim, the representative can provide you with more information on how to resolve them.

Steps to Check ERC Refund Claim Status by Mail

If you want to check the status of your claim by mail, follow these steps:

1. Write a letter to the IRS requesting the status of your refund claim: Write a letter to the IRS that includes a request for the status of your claim. In the letter, provide your full name, address, Social Security number or tax ID number, and the tax year you claim the refund.
2. Provide the required information in the letter: In the letter, you should also provide any other information related to your refund claims that may be relevant, such as the date you filed your tax return or the date you submitted your refund claim. If you have any documentation related to your claim, such as a copy of your tax return or a notice from the IRS, you should include this information in the letter.
3. Mail the letter to the appropriate IRS address: Once you have written the letter and provided the necessary information, mail it to the appropriate IRS address. The address you should use will depend on the state where you live and whether you are enclosing a payment with your letter. You can find the appropriate address on the IRS website.

After you have mailed the letter, it may take several weeks for you to receive a response from the IRS. The response should include information on the status of your ERC refund claim, including whether it has been processed and the expected payment date, if applicable.

Popular Forms, Instructions & Publications

The Internal Revenue Service (IRS) provides various forms, instructions, and publications related to ERC refund claims on its website. Some of the key forms and publications related to ERC refund claims include the following:

• Form 1040: This form is used to report your individual income tax return and claim any ERC refund.
• Form W-4: This form calculates the amount of income tax that should be withheld from your paycheck, which can impact the amount of your ERC refund.
• Form 1040-ES: This form calculates and pays estimated tax payments throughout the year, which can impact your ERC refund.
• Form W-9: This form provides your taxpayer identification number to the person or organization paying you income.
• Form 4506-T: This form is used to request a transcript of your tax return, which may be required to support your ERC refund claim.
• Form 941 reports employment taxes, which can impact your ERC refunds.
• Form W-2: This form reports your income and taxes withheld from your paycheck, which can impact your ERC refunds.
• Form 9465: This form is used to request a payment plan with the IRS, which may be an option if you owe taxes but are also entitled to ERC refunds.
• Form SS-4: This form is used to apply for an Employer Identification Number (EIN), which may be required if you claim an ERC refund as a business.
• Form W-7: This form is used to apply for an Individual Taxpayer Identification Number (ITIN), which may be required if you are not eligible for a Social Security number but must file a tax return.

Overall, these forms, instructions, and publications can provide important guidance and resources for individuals and businesses seeking to claim ERC refunds.

What to Do If There Are Issues With Your ERC Refund Claim

If there are issues with your ERC refund claim, there are several steps you can take to resolve them:

1. Review the IRS guidance on common issues with ERC refund claims: The IRS guides on common issues that can cause delays or other problems with ERC refund claims. Reviewing this guidance can help you identify any issues with your claim and take appropriate steps to resolve them.
2. Contact the IRS for assistance in resolving any issues: If you cannot resolve any issues with your ERC refund claim, you can contact the IRS for assistance. You can call the toll-free number for refund status inquiries (800-829-1954) or contact the IRS by mail to request assistance.

When contacting the IRS, make sure to have all of the relevant information related to your claim available, including your Social Security number or tax ID number, the tax year for which you are claiming the refund, and any documentation related to your claim. The IRS representative should be able to provide you with more information on resolving any issues with your claim and help you track its progress.

Why might your refund be taking longer?

There are several reasons why your ERC refund may be taking longer than expected. Some possible reasons include the following:

1. Processing backlog: The IRS has been experiencing significant backlogs due to the many refunds being processed due to pandemic-related relief efforts.
2. Verification requirements: If the IRS needs to verify information related to your refund claims, such as your employment status or eligibility for the credit, this can delay the processing of your refund.
3. Incorrect or incomplete information: If the information provided on your tax return or refund claim is incorrect or incomplete, this can lead to delays while the IRS tries to reconcile the information.
4. Review process: The IRS may review your refund claim to ensure that you are eligible for the credit and that the amount claimed is accurate, which can add additional processing time.
5. Payment method: Depending on your payment methods, such as direct deposit or a paper check, the processing and delivery of your refund may take longer.

If your ERC refund is taking longer than expected, it is recommended that you check the status of your refund using the methods outlined in the outline above and contact the IRS if you have any concerns or questions.

Using a Third-Party Company to Claim ERC Refund

Using a third-party company to assist you in claiming your ERC refund is possible, but it is important to proceed with caution and do your research before selecting a company to work with. Some key considerations include the following:

1. Fees: Third-party companies may charge fees for their services, which can significantly reduce your refund amount. Understanding the fees and costs associated with using a third-party company before agreeing to their services is important.
2. Credentials: Ensure that the third-party company is reputable and has the credentials and experience to assist you in claiming your ERC refund. Look for reviews and feedback from previous clients to ensure the company has a track record of success.
3. Responsibility: Remember that the ultimate responsibility for ensuring the accuracy of your refund claim lies with you, not the third-party company. Ensure you provide accurate information and review all documentation before submitting your claim.
4. Transparency: Choose a transparent and communicative company throughout the process, keeping you informed of any updates or changes related to your refund claim.

In general, it is possible to use a third-party company to assist you in claiming your ERC refund, but it is important to proceed with caution and carefully consider the potential costs and benefits before making a decision.

Final Thoughts

Check the status of your ERC refund claim to ensure that you receive the maximum benefit available to you. The IRS provides various online and offline methods for checking the status of your refund claim, including through their website, phone, and mail. When contacting the IRS to check your refund status, it is important to have the necessary information and documentation ready. 

Business owners should carefully review the forms, instructions, and publications related to ERC refund claims to ensure they follow the appropriate procedures and requirements. By taking these steps, individuals and businesses can navigate the process of claiming an ERC refund and receiving the financial assistance they are entitled to.