While the IRS combats the largest tax fraud in U.S. history, it’s rolled out a new favorable settlement offer for those who may have improperly claimed the Employee Retention Credit (ERC) for 2021. It hopes the offer will put a dent in its current backlog of more than 1.4 million ERC claims that are still pending.

Even though the ERC was only applicable for 2020 and the first three quarters of 2021, eligible practices can still file an amended payroll tax return (Form 941-X) on or before April 15, 2025, in order to claim the ERC for 2021. While the IRS placed a moratorium on processing new ERC claims in September 2023, new claims are still flooding in at the rate of over 17,000 a week.