Protect American Jobs
Preserving Essential Economic Incentives that Drive Growth
The Coalition to Preserve American Jobs (CPAJ) is committed to safeguarding employment-based economic incentives that puts more tax dollars back into the hands of employers and workers. CPAJ supports economic incentives that have been proven to both protect critical domestic jobs and enhance growth, but also serve as a safety net in times of unforeseen and emergent economic uncertainty. Most immediate, CPAJ is urging the IRS lift its September 2023 moratorium on the processing and payment of over 1.4 million+ Employee Retention Credit (“ERC”) claims.
What’s At Stake
The processing of Employee Retention Credit was put on hold by Internal Revenue Service (“IRS”) in September 2023 and has yet to be restarted. The ERC was deployed as a lifeline for small businesses and job creators, during the COVID-19 pandemic and has been a proven mechanism to keep businesses afloat in times of economic uncertainty. Learn more below:
Congress established the bipartisan Employee Retention Credit (the “ERC”) to safeguard businesses, enabling them to keep employees on payroll amidst unprecedented economic disruption.
During the COVID-19 pandemic, 45% of small businesses experienced a 50% reduction in revenue. Although the economy continues to recover, many businesses continue to face challenges brought on by the pandemic.
The ERC has played a crucial role in averting potential business closures and workforce reductions, enabling businesses to sustain operations and retain their valuable employees. In fact, according to a nationwide survey from March 2024, 93% of small business owners who received the ERC agree that the credit was critical to keeping their doors open and retaining employees on the payroll.
A backlog of 1.4 million+ ERC claims is harming American businesses and families.
The Internal Revenue Service (the “IRS”) moratorium has contributed to a backlog of over 1.4 million+ claims. Employers with legitimate claims are experiencing prolonged wait times for their claims to be reviewed and processed, adding to the uncertainty they face keeping their doors open and lights on.
According to a recent survey of small business owners, 68% of those who filed for the ERC stated their business operations were negatively impacted by the amount of time it took the IRS to pay their claims.
Since the creation of the ERC program in 2020, the IRS has continued to put out confusing and contradictory guidance further complicating employers’ ability to assess eligibility.
Small businesses can’t afford to wait! Urge the IRS to lift the moratorium NOW!
Congress must act to ensure the IRS expeditiously processes the 1.4 million+ outstanding ERC claims. Your advocacy is crucial to urge your congressional representatives to stand with employers and workers by demanding the IRS lift the moratorium on ERC claims.
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ABOUT US
The Coalition to Preserve American Jobs (CPAJ) is comprised of employers across industries who are the engine of the U.S. economy, along with those within the tax credit community. Tax credits like the ERC provide crucial tools to eligible employers as they continue to face instability and uncertainty in today’s economy. Our shared goal is to safeguard employment-based tax credits for future unforeseen natural disasters and any future instances of emergent economic uncertainty.
