Expedited ERC Process Explained

Last Updated on March 28, 2025 by Ewen Finser

As businesses continue recovering from economic disruptions caused by the COVID-19 pandemic, many have turned to the Employee Retention Credit (ERC) for help. The ERC provides substantial financial relief to businesses retaining employees during challenging times. However, despite its benefits, companies frequently encounter long processing delays from the IRS, leaving them wondering how to expedite receiving their credits. There are a few practical methods businesses can adopt to accelerate their ERC payments, ensuring faster access to the funds they urgently need.

Before you Keep Reading…

There is no legitimate way to “expedite” the ERC process beyond the IRS’s standard processing times. The IRS has even warned about scams and third-party promoters who claim they can speed up ERC claims. The best thing you can do is do your due diligence to ensure that you don’t cause any unnecessary delays. 

Understanding the Employee Retention Credit (ERC)

Before diving into strategies for expediting payments, it’s essential to clearly understand the ERC. Established by the CARES Act in March 2020 and subsequently modified by further legislation, the ERC is a refundable tax credit aimed at encouraging employers to retain workers during the pandemic. It is available to eligible businesses experiencing significant revenue declines or disruptions due to government mandates, and can provide tens or even hundreds of thousands of dollars in refunds.

Challenges with ERC Payment Processing

Despite the relief offered by the ERC, businesses often encounter significant delays in receiving these payments. The IRS, overwhelmed with backlogs from numerous pandemic-related programs, struggles to process the high volume of claims swiftly. Many businesses have reported waiting anywhere from three to nine months—or longer—for their ERC refunds, creating financial uncertainty. As a CPA, I have personally seen it take over 24 months in some instances for companies to receive their funding.

Fortunately, there are effective ways to mitigate delays and potentially expedite the receipt of your ERC payments.

File Electronically Whenever Possible

The most immediate and straightforward step to expedite your ERC refund is to file electronically. Although the IRS currently requires amended filings, such as Form 941-X, to be submitted via mail, initial quarterly returns (Form 941) can and should be filed electronically. Electronic filing ensures quicker acknowledgment and reduces the processing time.

When filing electronically, the IRS can more quickly identify errors or discrepancies, alerting you to issues that may cause delays. Additionally, electronic records facilitate clearer communication between your business and the IRS, streamlining follow-up interactions.

Ensure Complete and Accurate Information

Accuracy and completeness cannot be overstated when dealing with IRS forms. Errors, inaccuracies, or missing information on your Form 941 or 941-X can lead to significant delays, as corrections or additional documentation will be required.

Carefully double-check your calculations, employee counts, wage information, credit amounts, and qualification details. Clearly document your eligibility, including specific periods impacted and the method used to calculate your credit. Transparency reduces questions and confusion during IRS processing.

Mail to the Correct IRS Address

Many delays occur simply because the amended return or documentation was sent to the incorrect IRS mailing address. The IRS provides different addresses depending on your location and whether you include payments or refunds.

Check the most recent IRS guidelines and instructions for Form 941-X carefully before mailing. Ensure you have the most current and accurate address. A correctly addressed mailing significantly reduces processing times and unnecessary redirections.

Clearly Label Your Submission

Another practical but often overlooked step is clearly labeling your submission. Marking the envelope and the first page of your Form 941-X with the term “ERC Refund” prominently at the top ensures your filing stands out. Clearly identifying your filing’s purpose alerts IRS processing staff to prioritize your return, helping it move more swiftly through their system.

Use Certified Mail or Courier with Tracking

When submitting your amended return or ERC claim via mail, utilize certified mail or a reputable courier service providing detailed tracking. Having verifiable proof of delivery ensures accountability on the IRS’s end and enables you to address any processing delays proactively.

Regular and Proactive Follow-Up

Patience is often required when dealing with IRS refund processing, but proactive and regular follow-up significantly helps expedite the process. Wait a reasonable time—usually 90 to 120 days—after submitting your ERC claim before calling the IRS to check your refund status.

When contacting the IRS, have all necessary documentation readily available, including your tracking details, submission date, amounts claimed, and reference numbers. Be prepared for potentially long waits on hold, but persistence often pays off. Regular communication emphasizes urgency, helping push your claim forward.

Engage Professional Assistance

If your ERC claim is substantial or if you face prolonged delays, engaging a CPA or tax professional experienced in handling ERC filings may prove beneficial. These professionals can leverage their knowledge, experience, and IRS contacts to expedite processing.

Professional assistance ensures accuracy and compliance with IRS rules and expectations, significantly reducing errors and follow-up requests that frequently delay processing. Tax professionals can also advocate for your claim by effectively communicating your business’s situation and urgency directly to the IRS.

Contact the Taxpayer Advocate Service (TAS)

If your ERC payment delays become severe or impose financial hardship on your business, consider reaching out to the IRS’s Taxpayer Advocate Service (TAS). TAS is an independent organization within the IRS designed specifically to assist taxpayers encountering problems they haven’t resolved through normal IRS channels.

When contacting TAS, clearly outline your financial hardship, how the delay impacts your operations, and the steps you’ve already taken to resolve the issue. TAS advocates can intervene directly, expediting IRS processing and resolution.

Plan Strategically for Future Quarters

To avoid repeated delays with ERC payments, businesses should adopt strategic planning for future quarters. Keep meticulous records of eligibility, payroll data, calculations, and correspondence with the IRS. Consistent and organized documentation streamlines future claims.

Additionally, consider proactively filing initial quarterly returns electronically. Even if amendments (Form 941-X) must still be filed by mail, electronic initial returns establish clear electronic records that expedite IRS processing of future adjustments or refunds.

Stay Informed and Adapt to IRS Updates

ERC rules and IRS procedures evolve frequently. Businesses should monitor official IRS communications and guidance regularly to stay updated on any changes that could impact eligibility, refund calculation, or filing processes.

Subscribing to IRS newsletters, consulting regularly with a tax advisor, and periodically checking the IRS website helps ensure your business remains compliant and aware of any changes impacting ERC claims. Being informed allows businesses to swiftly adapt their approach, minimizing future delays.

Final Thoughts

While delays in ERC processing have proven challenging for countless businesses, proactively adopting the steps outlined above significantly enhances your chances of expediting your Employee Retention Credit refund. Filing electronically whenever possible, ensuring accurate and complete submissions, clearly labeling filings, mailing to the correct IRS addresses, utilizing tracking services, and engaging professional assistance or the Taxpayer Advocate Service represent powerful tools for accelerating the receipt of ERC payments.

By staying organized, informed, and proactive, businesses can successfully navigate IRS delays and gain timely access to vital ERC funds, promoting greater financial stability and resilience in the continued aftermath of the pandemic.