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IRS Issues FAQs on Recent Employee Retention Credit Changes

On October 22, 2025, the IRS published frequently asked questions (FAQs) addressing recent changes to the Employee Retention Credit (ERC) enacted under the One Big Beautiful Bill Act, which was signed into law on July 4, 2025.

These changes are related to the limitation on claiming the ERC for the third and fourth quarters of 2021. This limitation only applies to claims filed after January 31, 2024.

The FAQs are available in Fact Sheet 2025-7. Among other matters, they address:

  • When an ERC claim is considered “filed” for the purposes of the limitation
  • Whether paid ERC claims could still be subject to IRS recapture
  • Available appeal rights and the process for appealing an ERC disallowance by the IRS

Please contact us with questions or to learn how CapinCrouse can help your organization with the ERC.

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