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“I’m calling on the IRS to hear the needs of these business owners and to do everything in their power to deliver this already-passed money swiftly and efficiently,” Sen. Gillibrand said.
By Michael V. Cusenza
United States Sen. Kirsten Gillibrand (D-N.Y.) recently sent a letter to Internal Revenue Service Commissioner Charles Rettig calling on him to expedite and clear the backlog of unprocessed Employee Retention Credit payments that were passed and guaranteed in the CARES Act in March of 2020.
According to Gillibrand, the ERC credit was created to help struggling businesses in urgent need of assistance due to economic disruptions during the COVID-19 pandemic. Specifically, disbursement of the ERC credit would ensure businesses receive funding in the form of a payroll credit to encourage businesses owners to retain employees and help offset the cost of lost revenue and rising inflation. These payments are especially needed for small and mid-sized businesses that have suffered massive financial losses due to reduced demand and supply chain disruptions, Gillibrand noted.
The senator is also calling for the IRS to clear the significant backlog of individual income tax returns so that individuals and families can receive their Child Tax Credit, UI related refunds, Earned Income Tax Credit, and other payments in a timely manner.
“I realize the challenge the COVID-19 pandemic has presented to your agency, both with staffing shortages and additional work brought on by new provisions like the ERC,” Gillibrand wrote. “I am aware that there is also a significant backlog of individual income tax returns that need to be processed, and it is important that clearing that backlog remains a priority so that individuals and families can receive their Child Tax Credit, UI related refunds, Earned Income Tax Credit, and other payments in a timely manner. I hope the IRS can also take steps to support employers by taking action to clear the ERC refund backlog and getting checks into the hands of business owners in New York and across the country.”
Gillibrand said last week that she has “heard from constituents across New York and the message is clear – after two years of grappling with financial hardship caused by the pandemic, businesses are in dire need of this assistance through the ERC credit. We did our part in Congress, now it’s time for the IRS to deliver. When Congress passed this funding as part of the CARES Act, businesses were assured they would receive immediate and direct assistance in the form of a payroll credit to help keep Americans employed and operations running during this difficult time. I’m calling on the IRS to hear the needs of these business owners and to do everything in their power to deliver this already-passed money swiftly and efficiently.”
Andrew Rigie, executive director, NYC Hospitality Alliance, added, “Restaurants in New York City and around the country have been devastated by the COVID-19 pandemic, and the federal government’s Employee Retention Credit was intended to provide critical relief to struggling small businesses. Unfortunately, too many restaurants and bars have been waiting way too long to receive the employee retention credit they’re owed by the IRS, which is posing significant financial burdens because they were relying on this money help to pay rent, keep people employed and to help keep their doors open.”
