ERC refunds are real, but they arrived in waves over two years
Yes, people have received Employee Retention Credit (ERC) refunds. The IRS began processing them in late 2021 and continued through 2023. Most refunds went to business owners who filed amended payroll tax returns (Form 941-X) claiming the credit for wages paid during pandemic shutdowns in 2020 and 2021.
The refunds were not automatic. Businesses had to file a claim, and the IRS processed them in the order they arrived, not all at once. Some people waited months; others waited over a year. The IRS also paused processing in mid-2023 to review claims for fraud, which delayed many refunds that were already in the queue.
If you filed an ERC claim and have not received your refund yet, the status depends on when you filed and whether your claim triggered a review. The IRS stopped accepting new ERC claims on December 31, 2023, so no new refunds are being issued for claims filed after that date.
Key Takeaways
- ERC refunds were issued between late 2021 and 2023, with most arriving within 6 to 18 months of filing the claim.
- You had to file Form 941-X (Amended Employer's Quarterly Federal Tax Return) to request the refund; it did not come automatically.
- The IRS paused ERC processing in mid-2023 to investigate fraud, which delayed thousands of pending refunds.
- No new ERC claims are being accepted after December 31, 2023, though the IRS may still process claims filed before that deadline.
How the ERC refund timeline actually worked
The IRS did not process all ERC claims at the same speed. Refunds arrived in batches based on when the claim was filed and how straightforward the claim was. A business that filed early in 2021 and had clear documentation might have received a refund by mid-2022. A business that filed in late 2022 or early 2023 might not have seen money until late 2023 or not at all.
The typical wait was 6 to 18 months from the date the IRS received the Form 941-X. Some refunds arrived faster—within 3 to 4 months—if the claim was simple and the business had already been audited. Others took longer because the IRS requested additional documentation or flagged the claim for review.
In July 2023, the IRS announced it was pausing ERC processing to address fraud concerns. This pause affected claims that were already submitted and waiting for approval. The IRS began issuing guidance on which claims would be reviewed more carefully, and many businesses found their refunds stuck in limbo for months after that announcement.
Where to check the status of an ERC claim you filed
If you filed an ERC claim before the December 31, 2023 deadline, you can check its status through the IRS Business Account portal or by calling the IRS at 877-829-5500. You will need your Employer Identification Number (EIN) and the date you filed the Form 941-X.
The IRS does not send automatic status updates by email or mail. You have to check manually. The portal will show whether the claim is pending, approved, denied, or under review. If it says "under review," the IRS is investigating the claim for accuracy or fraud indicators.
If you filed through a tax professional or accountant, they may have access to more detailed status information through their IRS e-services account. Contact them directly to ask for an update rather than calling the IRS yourself.
What happened to claims filed after the December 31, 2023 deadline
The ERC program ended on December 31, 2023. The IRS stopped accepting new claims after that date. If you filed a Form 941-X after December 31, 2023, the IRS will reject it and return it without processing.
However, claims filed before that deadline are still being processed, even if the refund has not arrived yet. The IRS has not announced a final deadline for processing existing claims, but based on the pace in 2023, many remaining claims may take several more months or longer to resolve.
If your claim was denied, you have the right to appeal through the IRS Appeals process. This is separate from the ERC program itself and requires filing a formal protest with the IRS within 30 days of the denial letter.
Why some ERC refunds were denied or delayed
The IRS denied or delayed ERC refunds for several reasons. The most common were: the business did not meet the definition of a "covered employer" under the rules, the wages claimed were ineligible (such as wages already covered by a Paycheck Protection Program loan), or the claim lacked proper documentation.
The fraud pause in mid-2023 also caught many legitimate claims. The IRS flagged claims that looked unusual—such as very large refunds, claims from businesses in certain industries, or claims filed by the same tax professional for many clients. These claims went into a review queue that moved slowly.
Some businesses also filed incorrect claims because they misunderstood the may be able to access rules or worked with a tax professional who made errors. Once denied, correcting the claim and resubmitting it required filing a new Form 941-X, which put the claim back at the end of the processing queue.
What to do if you filed an ERC claim and have not received your refund
First, check the status of your claim through the IRS Business Account portal or by calling 877-829-5500. Have your EIN and the date you filed the Form 941-X ready. The IRS will tell you whether the claim is still pending, approved but not yet paid, under review, or denied.
If the claim is approved but payment has not arrived, ask the IRS how long the payment will take. Approved refunds are typically issued within 30 days, but delays happen. If more than 30 days have passed since approval, contact the IRS to confirm the payment was sent and ask for a payment trace.
If the claim is under review, ask what information the IRS needs from you. Respond quickly with any documents they request. If the claim is denied, request a copy of the denial letter and review the reason carefully. You may be able to file an appeal or a corrected claim if the denial was based on an error.
How ERC refunds were actually paid
The IRS issued ERC refunds as direct deposits to the business's bank account or by check, depending on how the business filed its payroll taxes. Most refunds went by direct deposit because businesses file payroll taxes electronically. Checks were issued only if the business had no bank account on file with the IRS.
Direct deposits typically arrived within 5 to 10 business days after the IRS approved the claim. Checks took longer—usually 2 to 3 weeks from the date the IRS mailed them. Some checks were lost or delayed in the mail, which is why the IRS recommends setting up direct deposit if possible.
If you received a refund but it was smaller than you expected, the IRS may have reduced it because it found that some of the wages you claimed were ineligible. The IRS sends a detailed explanation with the refund, so check that letter to understand what was approved and what was denied.
Frequently Asked Questions
Can I still file an ERC claim now?
No. The ERC program ended on December 31, 2023, and the IRS stopped accepting new claims after that date. If you did not file before the deadline, you cannot file now. However, if you filed before the deadline and your claim is still pending, the IRS may still process it.
How long does it take to get an ERC refund after it's approved?
Most approved refunds are issued within 30 days. Direct deposits typically arrive within 5 to 10 business days after the IRS approves the claim. Checks take 2 to 3 weeks. If more than 30 days have passed since approval, contact the IRS to check on the payment status.
What if the IRS denied my ERC claim?
Request a copy of the denial letter and review the reason. If you believe the denial was wrong, you can file an appeal with the IRS Appeals office within 30 days. You may also be able to file a corrected Form 941-X if the denial was based on an error in your original claim.
Do I have to pay taxes on my ERC refund?
Yes. The ERC refund is taxable income to your business. You may have already reported it as income on your 2023 tax return, or you may need to report it on an amended return if you received the refund after filing. Consult a tax professional about how to report it correctly.
Can I check my ERC claim status without calling the IRS?
Yes. Log into the IRS Business Account portal using your EIN and password. The portal shows the status of your claim and any messages from the IRS. You can also call 877-829-5500, but the portal is faster if you already have an account set up.