The Internal Revenue Service (IRS) issued Fact Sheet 2025-07 providing responses to frequently asked questions relating to Section 70605(d) of the One Big Beautiful Bill Act (OBBBA) and the limit on credits and refunds for COVID-19 era Employee Retention Tax Credits (ERC). Specifically, the fact sheet explains that Section 70605(d) of the OBBBA prevents the IRS from allowing or refunding ERCs after July 4, 2025 (the date of enactment of the OBBBA) claimed for the third and fourth quarters of 2021 that were filed after January 31, 2024, regardless of whether a taxpayer meets the eligibility requirements. The IRS explains that OBBBA’s limitation on ERC claims only applies to new claims filed after January 31, 2024, and does not apply to any claim for the third or fourth quarter of 2021 filed on or before January 31, 2024 that was refunded or credited before July 4, 2025.
