ERC Refund Stuck in Limbo?
Take Back Control Of Your Claim.
ERC litigation takes your claim out of the IRS backlog and puts it on a timeline. By filing in federal court, we start the clock and push the government to act — not drag you through endless, costly litigation. The goal is simple: move your claim forward and reach a settlement that pays your refund in full, plus interest.
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Don’t Wait on the IRS — See Your Next Steps
Not sure how to resolve your ERC claim? This guide walks you through the different paths businesses can take — from pursuing litigation to responding to IRS denials, to managing refund delays. Learn the pros, cons, and timelines of each option so you can make an informed decision.
FAQ
Frequently Asked Questions
ERC refunds have been heavily delayed because the IRS is overwhelmed by the sheer number of claims filed and has increased scrutiny due to widespread fraud from pop-up “ERC mills.” Many claims are being flagged for additional review, and the IRS has slowed processing times across the board. In some cases, refunds that should have taken months are now taking well over a year. If your refund is delayed, it doesn’t necessarily mean your claim is invalid — it often means the IRS is simply backlogged or has placed your claim in a review queue.
No. Taxpayers have the legal right to bring a refund lawsuit if the IRS fails to issue payment within six months of filing the claim. The IRS does not retaliate against taxpayers for exercising their rights in court. In fact, litigation can often bring clarity and accountability, ensuring your case is handled on a defined timeline instead of being stuck in limbo.
There are a few potential paths:
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Wait and monitor: For some taxpayers, the IRS will eventually process the refund, but this could take many months or longer.
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Administrative appeals: If your claim was denied or partially disallowed, you may be able to appeal within the IRS.
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Litigation: If six months have passed with no refund (or if you’ve received a denial you disagree with), you have the right to file a refund lawsuit in federal court. This starts a 60-day clock requiring the government to respond and can push your case toward resolution faster.
Which option is best depends on your specific situation — but litigation often provides the clearest path when delays drag on with no end in sight.
You’ll typically know your ERC claim is under review if you receive correspondence from the IRS, such as a request for additional documents or an audit notice. In many cases, especially for claims over $500,000, the IRS is applying a multi-tiered review process before releasing refunds. This means larger claims often face extra scrutiny and longer timelines compared to smaller filings.
Once we file an ERC refund lawsuit in federal court, the IRS is placed on a 60-day deadline to respond. From there, most cases move toward resolution within 6–12 months. While every case is different, our goal is to push for a favorable settlement as efficiently as possible, so your business isn’t left waiting indefinitely.
Legal Guidance That Works
Over 20 Years Defending Businesses in IRS Disputes
At Brotman Law, we’ve helped clients file for more than $160 million in ERC tax credits and guided businesses facing IRS challenges, including disallowance letters and refund delays. Our deep background in IRS disputes means we are uniquely equipped to handle ERC cases from start to finish. With over 400 clients represented in audits before state and federal tax agencies, we bring the experience and strategies needed to defend your refund and protect your business.
Call Now:
Let’s Move Your ERC Claim Forward
Schedule your free consultation with Attorney Sam Brotman. In just one conversation, you’ll get clarity on where your claim stands, what options are available, and how to take the next step with confidence.
No pressure—just straightforward guidance.
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