IRS Adopts Vensure-Led ERC Claim Split, Unlocking $X Billion in Delayed Refunds
Event summary
- Vensure Employer Solutions successfully advocated for IRS to bifurcate ERC claims, allowing approved portions to be paid while disputed sections remain under review.
- This change resolves a structural bottleneck that delayed refunds for over 500 PEOs and 230,000 businesses nationwide since early 2021.
- The new process accelerates access to critical capital that businesses had earned but were unable to claim due to grouped audits stalling entire batches of claims.
- Vensure's advocacy included 2025 engagement with Washington policymakers to address a backlog of nearly 600,000 unprocessed ERC claims.
The big picture
This development addresses a critical bottleneck in ERC processing that has constrained growth for businesses relying on these funds. Vensure's success in advocating for this change highlights the growing influence of HR technology providers in shaping regulatory processes. The move could set a precedent for how other delayed government relief programs are administered, particularly those impacting small and mid-sized enterprises.
What we're watching
- Processing Speed
- The pace at which bifurcated claims are now processed and paid out, particularly for businesses that have been waiting since 2021.
- Industry Impact
- How this structural change will affect the broader PEO industry's ability to serve small and mid-sized businesses with timely financial relief.
- Regulatory Precedent
- Whether other industries facing similar claim processing bottlenecks will push for comparable bifurcation approaches with regulatory bodies.