EMPLOYEE RETENTION
TAX CREDIT (ERTC) - STOP THE STEAL

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Here's what I sent to my congressman and I invite you to use this language:

[Your Name]
[Your Business Name, if applicable]
[Your Address]
[City, State, ZIP]
[Email Address]
[Phone Number]

[Date]

The Honorable [Representative's Full Name]
[Office Address]
[City, State ZIP]

RE: ‘THE ONE, BIG, BEAUTIFUL BILL’ Opposition to Retroactive Deadline on Employee Retention Credit Claims

Dear [Representative/Senator] [Last Name],

I am writing as a constituent and small business owner deeply concerned about the proposed legislation that would disallow Employee Retention Credit (ERC) claims filed after January 31, 2024 — even for claims that were timely filed under existing law and within the statute of limitations.

While I understand the intent to curb fraudulent claims, applying this restriction retroactively would cause significant harm to thousands of legitimate employers — including myself — who acted in good faith, relying on the law as it stood at the time.

These are not fringe cases. Many, business owners including ourselves, were misled by IRS notices or conservative advisors who mistakenly believed the program had already ended. Others delayed filing while waiting for clear IRS guidance that never came.

It is important to emphasize that as of today, the IRS is no longer accepting any new ERC claims. The filing window has already closed. Therefore, this legislation does not serve to prevent new or future abuse — it would only disqualify existing claims that were filed within the time legally permitted.

Here's why this retroactive cutoff would be devastating:

1. It Breaks Trust in the Tax System

The IRS and Congress originally provided a clear window for ERC claims — typically up to three years from the date a return was filed. Many businesses relied on this timeline. Changing the rules retroactively undermines the credibility of our tax system and penalizes those who acted lawfully.

2. It Punishes Good-Faith Employers

Legitimate employers who invested time and money to document and file ERC claims—often based on slow guidance and evolving IRS rules—will now be denied relief they qualify for. This is particularly unfair to small businesses that acted cautiously and waited for clear guidance before filing.

3. It Disproportionately Harms Small Businesses

Big corporations were able to file early, often with large accounting teams or PEOs to handle their submissions. But many small businesses had to navigate the complexity on their own or through overwhelmed consultants. Punishing these businesses for filing after an arbitrary cutoff only widens the gap.

4. It Disincentivizes Future Compliance

If Congress can retroactively nullify a valid tax credit claim without warning, it sets a dangerous precedent. Why would taxpayers feel confident following IRS guidance if Congress can change the rules after the fact?

5. The January 31, 2024 Cutoff Was Not Communicated as a Final Deadline

Many taxpayers did not interpret the IRS’s “moratorium” announcement in September 2023 as a hard deadline. In fact, the IRS said it was pausing processing, not eliminating eligibility, and the IRS website continued to cite the 4/15/2025 deadline for claiming ERC. Codifying that date now retroactively as a final cutoff is misleading and unjust. 

A Better Path Forward

If the concern is fraud, I fully support more stringent enforcement, documentation requirements, and penalties for bad actors. But those efforts should focus on reviewing and investigating existing claims — not retroactively disqualifying legitimate ones that were filed under the law as it existed at the time.

The filing period has already closed. Let the IRS do its job with proper review and audits. But please do not allow this legislation to penalize small businesses that played by the rules.

I respectfully urge you to oppose any provision that retroactively disallows valid ERC claims filed after January 31, 2024. Congress should protect honest businesses, not penalize them for following the law in good faith.

Thank you for your service and consideration of this urgent matter. I would welcome the opportunity to speak further or provide testimony on how this change would personally impact my business and others like mine.

I have included the relevant text of the proposed “Big Beautiful Bill” for reference below:

SEC. 112205. ENFORCEMENT PROVISIONS WITH RESPECT TO COVID-RELATED EMPLOYEE RETENTION CREDITS. (h) LIMITATION ON CREDIT AND REFUND OF COVID-RELATED EMPLOYEE RETENTION TAX CREDITS.—Notwithstanding section 6511 of the Internal Revenue Code of 1986 or any other provision of law, no credit or refund of any COVID-related employee retention tax credit shall be allowed or made after the date of the enactment of this Act, unless a claim for such credit or refund is filed by the taxpayer on or before January 31, 2024.  

Sincerely,
[Your Full Name]
[Business Name, if applicable]
[City, State]