New ERC Deadline: IRS FAQs on the OBBBA
What Businesses Need to Know About the January 31, 2024, Employee Retention Credit (ERC) Filing Deadline Under the One, Big, Beautiful Bill Act
The Internal Revenue Service (IRS) recently released a crucial set of Frequently Asked Questions (FAQs) in Fact Sheet FS-2025-07 (dated October 22, 2025, and updated October 30, 2025) to provide clarity on the Employee Retention Credit (ERC) compliance provisions enacted by the One, Big, Beautiful Bill Act (OBBBA).
For businesses that filed or considered filing ERC claims, the OBBBA introduced significant changes, particularly for those relating to the third and fourth quarters of 2021. These changes center on a new, hard deadline for claims and enhanced compliance enforcement.
Critical Limitation for 2021 Q3/Q4 ERC Claims
The most impactful provision is Section 70605(d) of the OBBB, which creates a statutory limitation on certain ERC claims:
The Deadline
The IRS is prevented from allowing or refunding ERCs for the third and fourth quarters of 2021 if those claims were filed after January 31, 2024.
Effective Date
This limitation is effective for credits and refunds allowed or made after July 4, 2025 (the date the OBBB was enacted).
The “Filed” Definition
A claim is considered “filed” by the deadline if it was postmarked and properly mailed or submitted to the appropriate IRS office on or before January 31, 2024.
In short, if you missed the January 31, 2024, filing deadline for Q3 or Q4 of 2021, the IRS will not be able to allow or refund your new ERC claim after July 4, 2025, even if you were otherwise eligible.
Read the full IRS FAQ and IRS disclaimer for more details.
Brady Ware Disclaimer: This article provides general information and should not be considered professional financial or tax advice. Please consult with a qualified CPA or financial advisor for guidance specific to your individual business needs.
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