April 7, 2022
The Honorable Charles P. Rettig
Internal Revenue Service
1500 Pennsylvania Avenue, NW
Washington, D.C. 20220
We are writing regarding the Internal Revenue Service’s (IRS) processing of Employee Retention Tax Credit (ERTC) payments. Constituents have contacted our offices with accounts that they are not receiving refund credits in a timely fashion. Small business owners and nonprofits alike in our districts report that they often face a wait time of eight to ten months to receive payment checks.
The ERTC was designed to help businesses and nonprofits facing revenue reductions due to the economic uncertainty caused by the COVID-19 pandemic. While the pandemic may be waning and business and nonprofits are starting to see growing demand, the economic challenges of the last two years remain. In addition, small businesses are facing rising costs for goods and services creating an additional economic urgency to receive their tax credit. The IRS must do all it can to ensure that ERTC claims are processed as quickly as possible, and those payments are sent out immediately.
It is clear to us that the processing of ERTC claims must be elevated as a high priority. Small businesses and organizations in our districts and across the nation relied on the ERTC so that workers could remain on the job and that those businesses could continue operating. Small business owners and nonprofits now need these long-delayed payments to provide for their employees’ financial well-being and continue our nation’s economic recovery from the COVID pandemic.
In all too many cases, delayed payments can mean the difference between a business and nonprofit remaining open or not. In response to these delays, businesses and nonprofits are considering taking previously unthinkable actions such as furloughs, layoffs or even outright closure.
We are also troubled to hear that those making ERTC claims are having difficulty contacting the IRS regarding the status of their applications. We urge you to rectify this and ensure that the IRS directly communicates with those seeking urgent help. It is vital that business employers, nonprofits, and congressional offices working on behalf of their constituents can be confident that the IRS is taking immediate and concrete steps to clear the ERTC claims backlog. We request the IRS to take immediate action to alleviate this problem by creating a separate phone line and electronic mailbox specifically for small businesses and nonprofit organizations who are claiming this emergency credit and giving a timeline to receive relief. It was the intent of Congress to provide immediate relief for our nation’s small businesses and nonprofits, and any further delay by the IRS is unacceptable.
Thank you for reviewing the matter, we look forward to your reply.