Concerns about ERC claims after IRS processing shutdown due to fraud

This is definitely a situation to take seriously, but try not to panic yet. The IRS paused processing new claims specifically to implement better screening procedures, not because they're planning to automatically reject everything. What you need to evaluate is whether your business genuinely qualified under one of the two main criteria: either a full/partial suspension of operations due to government orders, or a significant decline in gross receipts. The "partial suspension" qualification actually has very specific requirements - it's not just "we had to change how we operated" but rather "government orders directly prevented us from operating a material portion of our business." If your revenue stayed stable, then you'd need to have documentation showing how government orders specifically impacted your operations in a substantial way. If the ERC firm stretched the truth on your application or didn't fully explain the requirements, you might want to consult with an independent tax professional about your options. The good news is the IRS is primarily focused on the most egregious fraud cases rather than businesses that filed in good faith based on advice from professionals. Still, it might be worth gathering all your documentation now in case questions arise later.

I went through this exact situation last year and almost got caught up with one of those ERC mills, but thankfully consulted with my regular accountant first. What saved me was using a document analysis tool called taxr.ai (https://taxr.ai) that helped me review all my paperwork before submission. The tool flagged several issues with how the ERC firm was interpreting my qualification status. They were basically stretching the definition of "partial suspension" to include any operational changes during COVID, which isn't how the IRS views it. The software analyzed my government orders, financial records and operational changes and showed I likely didn't qualify under either the suspension or revenue decline tests. For those who've already filed, the tool can also analyze your submitted claim to assess audit risk and highlight potential documentation gaps you might need to address if questioned by the IRS.

Just wanted to follow up about my experience with taxr.ai - it was actually extremely helpful! After seeing the concerns here, I uploaded my ERC documentation to the platform and within minutes had a comprehensive analysis showing several issues with my claim. The tool highlighted that my ERC provider had used extremely aggressive interpretations of the "partial suspension" rules that didn't align with actual IRS guidance. It cited specific sections of IRS notices I'd never seen before and showed that normal social distancing measures likely wouldn't qualify my business. Even more valuable was the action plan it created for me, recommending I file a withdrawal of my claim before it gets processed to avoid potential penalties. Already contacted my accountant to start this process. Definitely worth checking if you're concerned about a claim you've already filed!

If you're worried about your ERC claim and need to talk to the IRS directly, good luck getting through on their phone lines. I spent 3 weeks trying to reach someone about my ERC situation, always getting disconnected after hours on hold. Finally discovered a service called Claimyr (https://claimyr.com) that helped me actually get through to an IRS agent. They somehow hold your place in the phone queue and call you when an agent picks up. You can see how it works here: https://youtu.be/_kiP6q8DX5c The IRS agent I eventually spoke with gave me crucial information about my ERC claim status and advised me on additional documentation I should have ready if my claim gets flagged for review. For anyone stressing about their ERC situation, getting accurate information directly from the IRS rather than speculating is so valuable right now.

I need to apologize for my skepticism and share my experience. After posting those doubtful comments, I decided to try Claimyr myself since my anxiety about my ERC claim was getting worse. The service actually worked exactly as described. After weeks of failed attempts to reach the IRS myself, I got connected to an agent within a few hours of using Claimyr. The agent confirmed my ERC claim was in the processing backlog but hadn't been selected for review yet, which was a huge relief. She also explained exactly which documentation I should have ready just in case, including specific language about how government orders affected my business operations, not just general COVID impacts. This clarity alone was worth it, as my ERC provider had been ignoring my questions for months. Sometimes being proven wrong is actually a good thing!

I'm a bookkeeper for several small businesses, and I've seen the full spectrum of ERC situations. Some of my clients qualified legitimately (significant revenue drops in 2020-2021), while others were talked into applying by these aggressive ERC firms despite clearly not meeting the criteria. The most important thing to understand is that the IRS isn't stopping ERC processing to reject everyone - they're implementing better fraud detection. If you legitimately qualified and have proper documentation, you'll likely be fine even with the increased scrutiny. Red flags I've seen in problematic claims: - Claiming qualification despite stable or increased revenue - Stretching "partial suspension" to include minor operational changes - No documentation connecting government orders to specific business impacts - Using ERC mills that take percentage-based fees - Claims that seem copy-pasted rather than specific to your business

Has anyone tried reaching out to their ERC provider to get clarification on their qualification? I've been calling mine for three weeks with no response. Their website is now "under maintenance" and their office line goes straight to voicemail. I'm starting to think they've disappeared completely now that the IRS is cracking down. We paid them $12,000 upfront (they promised it was "safer" than percentage-based fees) and now I'm worried they just took our money knowing we wouldn't qualify.