The Employee Retention Credit (ERC) has been a once-in-a-lifetime boon to restaurant owners.

When the tax credit was first announced, Kallas Restaurant Accounting was immediately applying for credits for our restaurant clients and to date, our clients have received over $50 Million in tax refunds. 

But, the money was so good, a lot of scam artists and fly-by-night companies started getting into the act, did some heavy advertising and abused the law.  These bad actors charged a percentage of fees based on the refunds, pressured ineligible business to file claims or just fraudulently created companies and filed false returns.

The amount of money going out of the U.S. Treasury was staggering. 

So to staunch the bleeding, on September 14, 2023, the IRS announced a moratorium on new claims.  In addition, if you had a claim already filed at the time, the IRS slowed the refund process to better vet the eligibility of the claims.  If you have not received your ERC refunds to date, the IRS is saying it may be a year or longer to get them.

The moratorium for new claims will last at least until the end of 2023.

The law is still on the books so the IRS may be forced to allow new claims at some point.  Kallas will continue to monitor the situation and will keep you informed.

If you did not take the credit originally and believe you may be eligible, let us know and we can do a preliminary assessment for you.  Once the moratorium is lifted we can file a claim on your behalf.