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Update on Status of ERC Refunds & PPP Forgiveness Questionnaire

By:  Alaina Fischer and Damien Strohmier, CPA, CCIFP

ERC Refunds

Did you file an Employer’s Quarterly Federal Tax Return or a Tentative Refund form and are waiting on a refund? According to a recent IRS update, you could be waiting longer.

As of May 6, 2021, the IRS reported having about 1.9 million Employer Quarterly Tax Returns, Form 941 waiting to be reviewed. While the IRS has made progress on these returns, they are being reallocated from high-volume areas to those with more availability to prevent further delays.

If you amended your original 941 form and filed Form 941-X or are claiming a refund, you may be waiting longer as all 941 forms must be processed first before 941-X forms.

Additionally, if you filed a Tentative Refund, Forms 1139 or 1045, the IRS states that there are no estimates currently available when they will be approved.

The IRS is suggesting companies remain patient and emphasizes returns are being processed in the order in which they were filed. Do not file additional requests or inquire about the status of your filing, as this can only further delay the system.

PPP Forgiveness Questionnaire

The U.S. Small Business Administration (SBA) has eliminated the loan necessity review for Paycheck Protection Programs (PPP) loans of $2,000,000 or greater.

What does this mean? The Loan Necessity Questionnaire (SBA Form 3509 and 3510) will no longer be requested or required to be submitted as part of the forgiveness application process.

Borrowers that have already completed and submitted the questionnaire will also receive relief as the SBA directed in its notice on July 9th, that any open request for information related to the Loan Necessity Questionnaire be closed.

Removing this requirement resulted from several organizations urging Congress to suspend the use of the questionnaires because of the information requested and the time frame allotted to provide the information.

If you have questions regarding ERC or PPP forgiveness, please contact your local Blue & Co. advisor for assistance.

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