Many businesses are asking why the relief requested during the COVID-19 outbreak has still not arrived and wondering if there are issues with their request. According to the U.S. Treasury Inspector General for Tax Administration (TIGTA), they confirm that some businesses are waiting for relief amid processing delays. There-fore, the lack of receipt of funds is not a clear indication there are issues with the businesses’ requests.
An August 31, 2022, report posted to the TIGTA web site said that the IRS “did not begin processing claims for qualified Sick and Family Leave Credits and the Employee Retention Credit for 12 months and claims for the Social Security Tax Deferral for 16 months after the pandemic relief legislation was enacted.”
Also as reported on the Internal Revenue Service website, they confirmed that, due to the lingering effects of COVID-19, they continue to experience delays. When possible, they are rerouting tax returns and correspondence to offices that have staff available to assist.
Some taxpayers that have filed for the Employee Retention Tax Credits and Paid Sick Leave and Family Leave Credits are currently awaiting a response. Taxpayers can contact the IRS regarding returns filed. If the returns have not been processed to date, the IRS may not have any information on file. If the returns have been processed with exceptions, the correspondence may provide progress in addressing these with the IRS.
Taxpayers that have not received a response can contact their tax preparers. Based on the dates filed, a determination can be made for the best course of action. The filing date will help determine if the IRS should be contacted, if any information should be sent, or if it is considered reasonable to continue to wait for a response.
For more information, contact Michele Loretto, CPA, Manager, Small Business Department at Tronconi Segarra & Associates LLP at 716.633.1373 or mloretto@tsacpa.com.
