--- title: "ERC Update: The IRS is Cracking Down on Fraudulent Claims" description: CRR partner Keith Blankenship discusses the latest ERC Credit updates, including the IRS' new moratorium and what to do if you've already applied. image: https://www.crradvisors.com/hubfs/AdobeStock_408721898.jpeg --- [Skip to content](https://www.crradvisors.com/blog/erc-update-irs-is-cracking-down-on-fraudulent-claims#main-content) [![CRR](https://www.crradvisors.com/hubfs/CRR.svg)Homepage](https://www.crradvisors.com) - [Home](https://www.crradvisors.com) - [Services](https://www.crradvisors.com/services) - [Audit & Assurance](https://www.crradvisors.com/services/accounting-auditing) - [Business Valuation](https://www.crradvisors.com/business-valuation) - [Client Accounting + Advisory Services](https://www.crradvisors.com/caas) - [Private Client Services](https://www.crradvisors.com/private-client-services) - [Tax for Businesses](https://www.crradvisors.com/tax-services-business) - [Tax for Individuals](https://www.crradvisors.com/tax-services-individual) - [Transaction Advisory](https://www.crradvisors.com/transaction-advisory-services) - [Industries](https://www.crradvisors.com/industries) - [Blog](https://www.crradvisors.com/blog) - [About Us](https://www.crradvisors.com/about-us) - [Team & Careers](https://www.crradvisors.com/about-us) - [CRR Charitable Foundation](https://www.crradvisors.com/crr-charitable-foundation) - [Contact](https://www.crradvisors.com/contact-us) - [Client Tools](https://www.crradvisors.com/client-portal) - [Home](https://www.crradvisors.com) - [Services](https://www.crradvisors.com/services) - [Audit & Assurance](https://www.crradvisors.com/services/accounting-auditing) - [Business Valuation](https://www.crradvisors.com/business-valuation) - [Client Accounting + Advisory Services](https://www.crradvisors.com/caas) - [Private Client Services](https://www.crradvisors.com/private-client-services) - [Tax for Businesses](https://www.crradvisors.com/tax-services-business) - [Tax for Individuals](https://www.crradvisors.com/tax-services-individual) - [Transaction Advisory](https://www.crradvisors.com/transaction-advisory-services) - [Industries](https://www.crradvisors.com/industries) - [Blog](https://www.crradvisors.com/blog) - [About Us](https://www.crradvisors.com/about-us) - [Team & Careers](https://www.crradvisors.com/about-us) - [CRR Charitable Foundation](https://www.crradvisors.com/crr-charitable-foundation) - [Contact](https://www.crradvisors.com/contact-us) - [Client Tools](https://www.crradvisors.com/client-portal) ![](https://www.crradvisors.com/hs-fs/hubfs/AdobeStock_408721898.jpeg?width=5600&height=3733&name=AdobeStock_408721898.jpeg) Regulatory Updates Tax Business Advisory # ERC Update: The IRS is Cracking Down on Fraudulent Claims ![Keith Blankenship](https://www.crradvisors.com/hs-fs/hubfs/Keith%20New.jpg?width=48&height=48&name=Keith%20New.jpg) Keith Blankenship September 20, 2023 After issuing multiple warnings, the IRS has announced a moratorium on processing new Employee Retention Credit (ERC) refund claims through the end of the year. In combination with stepping up its audit and criminal investigation work regarding ERC claims, the IRS hopes the moratorium will slow down the ERC process to allow the organization to better identify which claims are legitimate. While the ERC credit is real, scammers have been misrepresenting who can qualify for the credit, leading businesses to apply for a credit that does not apply to them. IRS commissioner Danny Werfel explains, “The continued aggressive marketing of these schemes is harming well-meaning businesses and delaying the payment of legitimate claims, which makes it harder to run the rest of the tax system. This harms all taxpayers, not just ERC applicants.” Although they will not accept any new claims for the remainder of the year, the IRS will continue to process refunds for any ERC claims that have been previously submitted. Employers can expect longer wait times – up to a year – to receive their refund payment. Additionally, the IRS may require additional documentation prior to processing the claim. The IRS is encouraging employers who have already applied to consult with a tax professional to confirm that they qualify for the ERC refund. Additional guidance will be released offering next steps for any employers who have applied but no longer believe they are eligible for the credit. If you have questions about the Employee Retention Credit or your eligibility, leave a comment below or feel free to contact me directly. I’m happy to help! ## Share this post [mailto:https%3A%2F%2Fwww.crradvisors.com%2Fblog%2Ferc-update-irs-is-cracking-down-on-fraudulent-claims](mailto:https%3A%2F%2Fwww.crradvisors.com%2Fblog%2Ferc-update-irs-is-cracking-down-on-fraudulent-claims) ## Keep reading ### [![](https://www.crradvisors.com/hs-fs/hubfs/AdobeStock_808994683.jpeg?width=4823&height=2412&name=AdobeStock_808994683.jpeg) Transaction Advisory Banks Banking What the SBA's New Quality of Earnings Rule Means for Your Next Deal](https://www.crradvisors.com/blog/what-the-sbas-new-quality-of-earnings-rule-means-for-your-next-deal) ### [![Staffing agency employees having a team meeting](https://www.crradvisors.com/hs-fs/hubfs/AdobeStock_1876259626.jpeg?width=7936&height=5291&name=AdobeStock_1876259626.jpeg) Staffing Staffing Series Week 4: What Staffing Agency Owners Should Know About the Work Opportunity Tax Credit (WOTC)](https://www.crradvisors.com/blog/staffing-series-week-4-what-staffing-agency-owners-should-know-about-the-work-opportunity-tax-credit-wotc) [![CRR](https://www.crradvisors.com/hubfs/CRR.svg "CRR")](https://www.crradvisors.com) *"CRR" is the brand name under which CRR, LLP and Bridgepoint Alliance, LLC, doing business as CRR Advisors, offer professional services to its respective clients in an alternative practice structure in accordance with the AICPA Code of Professional Conduct and applicable laws, regulations, and professional standards. CRR, LLP is a licensed independent CPA firm that delivers attest services to its clients. CRR Advisors provides tax business consulting, and other non-attest services to their clients. Although it may employ CPAs, Bridgepoint Alliance, LLC is not a licensed CPA firm. The use of the terms “our firm,” “we,” and “us,” and similar language, may refer to CRR, LLP and CRR Advisors as it operates in its alternative practice structure.*       - [Home](https://www.crradvisors.com) - [Services](https://www.crradvisors.com/services) - [Industries](https://www.crradvisors.com/industries) - [Blog](https://www.crradvisors.com/blog) - [About Us](https://www.crradvisors.com/about-us) - [Contact](https://www.crradvisors.com/contact-us) - [Client Tools](https://www.crradvisors.com/client-portal) --- © 2025 CRR, LLP. All rights reserved.