IRS Covid Tax Credit Backlog Grows to 1.4 Million Claims

The inventory of the IRS’s pandemic-era tax credit claims has grown to 1.4 million, with most claims filed before the processing pause, Deputy Commissioner Doug O’Donnell said in court documents.

Stenson Tamaddon LLC, a tax advisory firm, asked the US District Court for the District of Arizona to end the IRS’s moratorium on reviewing new employee retention credit claims. The IRS in September paused the processing of new claims and slowed the processing of others in an attempt to mitigate fraud and protect taxpayers. The pause left many taxpayers frustrated as they waited for their valid claims.

The ...