Complete Processing of All Employee Retention Credit Claims and Ensure Taxpayer Rights Are Protected

TAS is reviewing how to incorporate this initiative into an existing or new Collaborative Team, a Systemic Advocacy Project, or a potential FY 2025 Annual Report to Congress Most Serious Problem. Progress during this period was affected by the lapse in appropriations and related operational impacts, including reduced staffing capacity, reassignment of work and priorities, and a reevaluation of TAS’s approach to managing systemic advocacy objectives and associated initiatives.

IRS – Progress by the stated deadline was affected by the lapse in appropriations and related operational impacts, including reduced staffing capacity, and reassignment of work and priorities. Currently, the IRS plans to complete initial review of all ERC claims by December 31, 2026. TAS will continue to push for the IRS to expedite review of ERC claims.

Appeals – The IRS agreed to establish a standardized process for handling Forms 907 for taxpayers with disallowed ERC claims who are nearing statute expiration. The IRS expects to provide affected taxpayers with direct correspondence and online guidance explaining statute deadlines, Form 907 submission procedures, and the approval process. The IRS also plans to designate a centralized unit to receive and route Forms 907 for execution by the appropriate officials.

Because routing and approval procedures vary across Business Operating Divisions (BODs), the IRS stated a fully centralized process is not operationally feasible. By the end of this FY, the IRS committed to have each BOD review its internal procedures and work toward greater consistency, while also improving public guidance and controls to help ensure Forms 907 are routed and processed timely. TAS will continue monitoring and advocating for better tracking of statue cases.

TAS is reviewing how to incorporate this initiative into an existing or new Collaborative Team, a Systemic Advocacy Project, or a potential FY 2025 Annual Report to Congress Most Serious Problem. Progress during this period was affected by the lapse in appropriations and related operational impacts, including reduced staffing capacity, reassignment of work and priorities, and a reevaluation of TAS’s approach to managing systemic advocacy objectives and associated initiatives.

IRS – Progress by the stated deadline was affected by the lapse in appropriations and related operational impacts, including reduced staffing capacity, and reassignment of work and priorities. Currently, the IRS prioritizes the transcription, review, and risk assessment of ERC claims for taxpayers who are experiencing financial hardships. Claims the IRS identifies as low risk are processed expeditiously, and claims warranting examination are started expeditiously. TAS will continue to push for the IRS to expedite review of ERC claims.

Appeals – The IRS agreed to establish a standardized process for handling Forms 907 for taxpayers with disallowed ERC claims who are nearing statute expiration. The IRS expects to provide affected taxpayers with direct correspondence and online guidance explaining statute deadlines, Form 907 submission procedures, and the approval process. The IRS also plans to designate a centralized unit to receive and route Forms 907 for execution by the appropriate officials.

Because routing and approval procedures vary across Business Operating Divisions (BODs), the IRS stated a fully centralized process is not operationally feasible. By the end of this FY, the IRS committed to have each BOD review its internal procedures and work toward greater consistency, while also improving public guidance and controls to help ensure Forms 907 are routed and processed timely. TAS will continue monitoring and advocating for better tracking of statue cases.

TAS is reviewing how to incorporate this initiative into an existing or new Collaborative Team, a Systemic Advocacy Project, or a potential FY 2025 Annual Report to Congress Most Serious Problem. Progress during this period was affected by the lapse in appropriations and related operational impacts, including reduced staffing capacity, reassignment of work and priorities, and a reevaluation of TAS’s approach to managing systemic advocacy objectives and associated initiatives.

No substantive progress has been made in Q2. TAS will continue to attempt to engage the IRS in meaningful dialogue regarding resources to quickly and efficiently process taxpayer responses to ERC disallowance notices.

TAS is reviewing how to incorporate this initiative into an existing or new Collaborative Team, a Systemic Advocacy Project, or a potential FY 2025 Annual Report to Congress Most Serious Problem. Progress during this period was affected by the lapse in appropriations and related operational impacts, including reduced staffing capacity, reassignment of work and priorities, and a reevaluation of TAS’s approach to managing systemic advocacy objectives and associated initiatives.

The IRS agreed to establish a standardized process for handling Forms 907 for taxpayers with disallowed ERC claims who are nearing statute expiration. The IRS expects to provide affected taxpayers with direct correspondence and online guidance explaining statute deadlines, Form 907 submission procedures, and the approval process. The IRS also plans to designate a centralized unit to receive and route Forms 907 for execution by the appropriate officials.

Because routing and approval procedures vary across Business Operating Divisions (BODs), the IRS stated a fully centralized process is not operationally feasible. By the end of this FY, the IRS committed to have each BOD review its internal procedures and work toward greater consistency, while also improving public guidance and controls to help ensure Forms 907 are routed and processed timely. TAS will continue monitoring and advocating for better tracking of statue cases.