Shenango Valley News

U.S. Rep. Mike Kelly (R-PA) recently addressed IRS Commissioner Daniel Werfel regarding the ongoing delay in processing the Employee Retention Credit (ERC) to businesses. Rep. Kelly expressed concern over the backlog of ERC claims, stating, "I don't think there is anything more complicated than what we're talking about today when it comes to the IRS, the rules, and how it works."

The Employee Retention Credit, established by the CARES Act, was designed to assist small businesses in retaining employees during the COVID-19 pandemic. However, the IRS has faced challenges in processing these claims efficiently, attributing the delays to fraudulent submissions. In response to these delays, Rep. Kelly questioned Commissioner Werfel to seek clarification on guidance for eligible businesses awaiting ERC payments.

Rep. Kelly emphasized his support for small businesses that have submitted legitimate ERC claims by the deadline and are now awaiting payment from the IRS. He highlighted the importance of ensuring that government programs such as the ERC operate in the best interest of hardworking American taxpayers.

The IRS announced a moratorium on new ERC claims in September 2023 to address fraudulent activities and streamline the processing of legitimate claims. Rep. Kelly has backed the Tax Relief for American Families and Workers Act, which extends the deadline for filing new ERC claims to January 31, 2024. This legislation aims to facilitate the identification and prevention of abuse and fraud in ERC claims while ensuring that qualifying claims are processed and paid promptly.

In the ongoing efforts to support small businesses and workers affected by the pandemic, Rep. Kelly continues to advocate for the efficient and fair distribution of the Employee Retention Credit, emphasizing the importance of upholding the interests of those who contribute to the nation's economy.