If your business filed for the Employee Retention Credit (ERC) for years 2020 and 2021 on time but still hasn’t seen a refund, you’re not alone. Thousands of companies are caught in limbo, waiting for the IRS to process their claims. The ERC was supposed to provide fast relief — but the system has been anything but smooth. As of December 2024, the IRS reported a backlog of over one million ERC claims, with many businesses waiting for more than a year for their refunds. 

Why Your ERC Claim Might Be Delayed 

1. IRS Backlog 

• The IRS paused processing new ERC claims in late 2023 because of concerns about fraud. While they are reviewing legitimate claims, the pace has slowed dramatically. 

2. Complex Rules 

• The ERC rules have changed multiple times. Even if you filed in good faith, the IRS may be taking extra time to verify your eligibility and calculations. 

3. Aggressive Promoters 

• Many “ERC mills” pushed businesses to file inflated or ineligible claims. Because of that, the IRS is now scrutinizing all claims more closely, including legitimate ones. 

4. Audit Exposure 

• With the One Big Beautiful Bill Act of 2025, the IRS now has up to six years to audit certain ERC claims. That means your claim might be under extra review before a refund is issued. 

Did You Receive Letter 105-C? 

If you received Letter 105-C, it means the claim was disallowed or denied. Letter 105-C is your legal notice that the IRS is not allowing the Employee Retention Credit you claimed. Generally, Letter 105-C includes: 

• Reason for the decision. 

• Date of the decision. 

• Tax year or period for which the claim is denied. 

• Appeal rights. 

• Timeframe in which you must file suit if you wish to challenge our denial in court. 

If you want to appeal the decision, Tax Credit Group can help. Typically, there is a two-year window from the date of the letter to file an appeal.  

What You Should Do Right Now 

Doublecheck your eligibility to receive the credit. A simple way to check is to read about it at Tax Credit Group. Other questions to ask yourself, include: 

Did you file before the deadline? For 2020 wages, the cutoff was April 15, 2024. For 2021, it was April 15, 2025. 

Were your calculations correct? Double-check that you didn’t claim the same wages for both PPP and ERC, and that your revenue loss/shutdown qualifications were accurate. 

Do you have documentation ready? Keep payroll reports, financial statements, and proof of government orders (if you qualified through shutdowns). 

Was your provider reputable? If a third party handled your claim, make sure they didn’t overstate wages or eligibility — otherwise, you could be waiting on a refund that never comes. 

Don’t Wait — Get Expert Help 

If all this doublechecking feels overwhelming, you don’t have to go through the process without help. Tax Credit Group specializes in helping businesses: 

• Review and verify existing ERC claims. 

• Respond to IRS requests and audits. 

• Correct or amend claims that were mishandled. 

• Provide peace of mind that your business is protected. 

If you’re still waiting on your refund, it’s time to get clarity. If you received Letter 105-C, it’s time to decide if you should appeal or not. Either way, documentation and additional filings are necessary. 

Contact Tax Credit Group today. The team will help you understand what’s holding up your ERC claim or why you were disallowed, and make sure your business gets the support and answers it deserves. 

Please contact us to complete the form to receive free complimentary analysis.