< Back to IRS

Freya Larsen

What's the processing timeline for 941/941X filings to receive ERTC/FFCRA tax credits?

Has anyone actually received their Employee Retention Tax Credit or FFCRA credit payment from 941X forms submitted this year for the 2020 tax year? I filed back in February for the ERTC/FFCRA via 941X forms for all quarters of 2020, but still haven't seen a dime. Starting to get worried. Also, I just submitted my Q1 2021 Form 941 with the credits claimed directly on the form (not as an amendment). I know it's probably way too early to expect those payments, but I'm curious if anyone has insights on typical processing times for these? My business could really use the cash flow right now - we're talking about $22,000 for 2020 and another $15,800 for Q1 2021. Is the IRS prioritizing these credits at all or are they just sitting in a pile somewhere? Any experiences or timelines would be super helpful!

Omar Hassan

•

The processing times for ERTC and FFCRA credits have been all over the place unfortunately. I've been working with multiple business clients on these filings, and here's what I'm seeing: For 2020 941X amendments, most of my clients who filed in January are just now starting to receive their credits (5-6 month timeframe). Anyone who filed after February is still waiting. The IRS is extremely backlogged with these claims since so many businesses are filing for them simultaneously. For Q1 2021 Form 941 filings with credits claimed directly, those are moving a bit faster - typically 3-4 months from what I've observed. Since you just filed, I'd anticipate sometime in September or October assuming no issues with your filing. The unfortunate reality is that the IRS doesn't have dedicated staff solely processing these credits - they're working through everything chronologically for the most part, with some priority given to smaller businesses facing hardship.

0 coins

Chloe Taylor

•

Thanks for the insight. Did any of your clients have to call the IRS to get things moving or did the credits just show up one day? I'm on month 4 of waiting and getting antsy.

0 coins

Omar Hassan

•

Most clients didn't need to call - the credits typically arrive via check without warning. However, I've had three clients who needed to call after 5 months of waiting, and that seemed to help move things along. If you reach the 5-month mark, it's worth calling to check status, but before that, they'll likely just tell you it's still in processing. For clients who receive direct deposits for tax refunds, these credits still come as physical checks for some reason, so keep an eye on your mail.

0 coins

ShadowHunter

•

After struggling with my ERTC filings for months and getting nowhere with the IRS, I finally tried taxr.ai (https://taxr.ai) and it was actually really helpful. Their system analyzed my 941X forms before submission and flagged a calculation error I had made that would have delayed everything even longer. They have this feature where they can review your ERTC/FFCRA documentation and identify potential issues that might cause processing delays. Saved me from having to refile again and potentially wait another 6 months. Their expertise on these specific credits was impressive.

0 coins

Diego Ramirez

•

Did they help with calculating the actual credit amounts? I'm still confused about how to determine qualified wages for ERTC especially with the PPP loan interaction.

0 coins

Sounds interesting but do they actually help with tracking where your refund is in the IRS system or just with the filing part? Because my problem is I already filed and now I'm in limbo.

0 coins

ShadowHunter

•

They do help with calculating qualified wages and navigating the PPP loan interaction, which was actually one of my biggest hurdles. Their system has specific modules for handling the overlap between PPP forgiveness and ERTC qualification periods. They walked me through exactly which wages could count where. As for tracking existing filings, they offer monitoring services where they can check on the status of your refund with the IRS. In my case, they confirmed my filing was in the processing queue and gave me a more realistic timeframe than the IRS representatives did on the phone. They have some specialized access that seems to get better information.

0 coins

Diego Ramirez

•

Just wanted to update after using taxr.ai like someone suggested here. Honestly, I was skeptical at first but they really knew their stuff about ERTC! They reviewed my documentation and found that I was actually eligible for about $7,500 more than I had calculated myself because I misunderstood how the partial suspension rules worked for my type of business. They also helped me understand where my existing claim was in the process - apparently there was a common error code on my account that was causing the delay. Once they helped me address that with the IRS, my original claim started moving again. Just got notification that my check should arrive next week!

0 coins

Sean O'Connor

•

If you're tired of waiting and getting nowhere with the IRS, I'd recommend trying Claimyr (https://claimyr.com). I was in the same boat with my ERTC credits from Q4 2020 - filed in January and heard absolutely nothing for months. Claimyr got me connected with an actual IRS agent in about 20 minutes when I had been trying for weeks on my own. You can see how it works in their demo video: https://youtu.be/_kiP6q8DX5c The IRS agent was able to tell me exactly why my claim was delayed (missing a signature on one page - ugh!) and what I needed to do to fix it. Would have been waiting forever otherwise since the IRS wasn't sending any notifications about the issue.

0 coins

Zara Ahmed

•

How does this actually work though? IRS phone lines are a nightmare - how do they get you through when nobody else can?

0 coins

Luca Conti

•

Sounds too good to be true honestly. The IRS phone system is deliberately designed to be impenetrable. I'll believe it when I see it.

0 coins

Sean O'Connor

•

They use a technology that navigates the IRS phone system automatically - basically calls repeatedly using the optimal path through the menu systems and holds your place in line. When they finally get through to an agent, they connect you directly. It's not magic - they're just automating the painful process of calling, getting disconnected, and calling again that most of us try manually. They can't guarantee how helpful the IRS agent will be once you're connected, but in my experience, the agents can provide specific information about your filing status once you actually reach them. Most of us give up before ever speaking to a human.

0 coins

Luca Conti

•

I need to eat my words. After posting my skeptical comment earlier, I was desperate enough to try Claimyr for my 941X ERTC filing from December that was going nowhere. Got connected to an IRS agent in about 25 minutes after trying for literally MONTHS on my own. Found out my form was sitting in a specific department waiting for review, but the agent was able to flag it as a business experiencing financial hardship which apparently moves it into a priority queue. They told me to expect my check within 3 weeks. That's faster progress than I've made in 6+ months of trying. For anyone wondering - yes, it actually works. No, I don't know how they do it, but I'm not complaining!

0 coins

Nia Johnson

•

One thing to keep in mind with these ERTC/FFCRA credits - if your business got a PPP loan, make sure you're not claiming the same wages for both programs. I've seen several business owners have to return ERTC money because they counted the same payroll expenses for both. The documentation requirements are pretty strict too. Make sure you have clear evidence of either: 1) Full/partial suspension of operations due to government orders, or 2) The required revenue decline percentages The IRS has announced they're increasing scrutiny on these claims since they've seen a lot of questionable filings.

0 coins

Freya Larsen

•

Thanks for mentioning this. I did make sure to separate my PPP covered payroll from the ERTC calculations. My business definitely qualified under the partial suspension rules since we had capacity restrictions that affected more than a nominal portion of our operations. I have all the government orders saved as PDFs too. Do you think the increased scrutiny is causing additional delays in processing?

0 coins

Nia Johnson

•

Yes, the increased scrutiny is definitely contributing to the delays. The IRS has shifted more resources to review these claims, especially larger ones (typically over $50,000). The good news is that if your documentation is solid and you clearly separated PPP wages from ERTC-eligible wages, you should be fine - it just takes longer. I've also noticed claims under $50,000 seem to process faster in general. If your claim is larger, it typically gets routed to a special review team which adds weeks to the timeline.

0 coins

CyberNinja

•

I ended up using TaxCycle for my 941X filings and it helped quite a bit with getting the calculations right. Still took almost 5 months to get the credit though.

0 coins

Mateo Lopez

•

Did you file paper forms or electronic? I'm wondering if one method is faster than the other for processing.

0 coins

Sunny Wang

•

I'm in a very similar situation - filed my 941X forms for 2020 ERTC in March and still waiting. Based on what I'm seeing here, it sounds like we're right in that 4-6 month window that seems to be typical. One thing that's been helpful for me is keeping detailed records of when I filed and what I submitted. I created a simple spreadsheet tracking my filing dates, amounts claimed, and any correspondence. This way when I do eventually call the IRS (probably around the 5-month mark based on the advice here), I'll have everything organized. For what it's worth, I did file electronically through my tax software, and my CPA mentioned that electronic filings might have a slight advantage in processing time since there's no manual data entry required. Though with the volume of claims they're dealing with, I'm not sure it makes a huge difference. Hang in there - sounds like most people are eventually getting their credits, it's just taking much longer than anyone expected!

0 coins

Aidan Percy

•

That's a great idea about keeping detailed records in a spreadsheet! I wish I had thought of that when I started this process. I'm currently at the 2-month mark waiting for my Q1 2020 ERTC filing, and it's reassuring to hear that most people are eventually getting their credits even if it takes longer than expected. Did your CPA mention anything about whether there are certain red flags that might cause additional delays? I'm a bit worried since my business is relatively small and the credit amount is substantial compared to our typical payroll - wondering if that triggers extra scrutiny. Also curious if anyone has tried following up before the 5-month mark just to confirm the IRS actually received the filing? Sometimes I worry it got lost in the mail or something went wrong with the electronic submission.

0 coins

IRS AI

Expert Assistant
Secure

Powered by Claimyr AI

T
I
+
20,132 users helped today