Sagemont and TaxNow Announce Partnership to Provide “Where’s My ERC Refund?” Services


Sagemont and TaxNow Announce Partnership to Provide “Where’s My ERC Refund?” Services

March 19, 2024  |  8 min read

Following the Internal Revenue Service Moratorium announced in September 2023, Employee Retention Credit (ERC) refund processing has appeared to be at a complete or near standstill. On February 15, 2024, Daniel Werfel (the Internal Revenue Service (IRS) Commissioner), stated that the IRS is indeed processing ERC claims, albeit at a slower pace and with heightened scrutiny. Werfel further stated that since the announcement of the IRS Moratorium, the IRS has been processing around 1,000-2,000 ERC claims per week (which includes both approvals and denials). However, as the ERC backlog remains at over 1 million Forms 941-X (per the IRS’ website), many taxpayers are left wondering when and whether their ERC refund is ever coming.

To provide more transparency in ERC processing, South-Florida based-advisory firm, Sagemont Advisors has partnered with TaxNow, a cutting-edge IRS transcript monitoring and alerts service, to provide a suite of “Where’s My ERC Refund?” services for businesses seeking immediate answers regarding their ERC claims.

Businesses that take advantage of Sagemont’s base service offering (one-time fee of $499/per taxpayer), will receive both an “ERC Status Update” and “Red Flags Review,” as well as be provided a complimentary one-year subscription to TaxNow’s ERC refund and audit monitoring service ($200 value).

ERC Status Update

As part of this service offering, Sagemont will provide details as to what stage your ERC refund is in. For example, most ERC refunds fall in one of the following (4) stages:

  • Amended return confirmed received by the IRS;
  • Amended return or claim forwarded for processing;
  • ERC refund approved for refund payment; or
  • ERC Refund payment sent.

Additionally, the update may indicate an event identified in the Red Flags Review, discussed below, which may cause the ERC refund to be delayed, reduced, or rejected by the IRS.
Sagemont’s ERC Status Update will include a summary of your current “stage,” as well as copies of your IRS tax transcripts that will confirm both (i) the original filing date of your ERC claim, as well as (ii) any other supplemental information to evidence your current processing status.

Red Flags Review (by CPA)

Many ERC claimants are surprised to learn that there are issues on their IRS account that may be holding up the processing of their ERC refund due to one or more “red flags” on their account. There are a variety of common red flags that businesses should be made aware of, including:

  • Forms 941-X (amended returns) not received or posted to account;
  • Original Forms 941s not received or posted to account;
  • Processing was delayed due to non-ERC-related penalties or other delinquencies;
  • Processing was delayed due to an IRS audit (including a “30-Day Notice” through Letter 6612);
  • ERC claim was rejected due to an incorrect bifurcation of refundable ERC and non-refundable ERC amounts on Form 941-X;
  • ERC claim was rejected due to improper signature, signatory, or use of unapproved electronic signature; and/or
  • ERC claim was rejected or reduced due to an IRS agent improperly keying in the Form 941-X information into the IRS system.

Sagemont’s team of internal CPAs will carefully review your IRS tax records provided directly from the IRS to evaluate whether there are any relevant red flags that can be identified. To the extent that certain red flags are identified on the account, Sagemont can assist with remediation through their ERC resolution services.

TaxNow ERC Monitoring Service

Once your initial “Where’s My ERC Refund Report” has been delivered, Sagemont clients may continue to enjoy TaxNow’s ERC refund and audit monitoring services. TaxNow provides taxpayers with a web-based portal with useful dashboards and insights on their tax account with the IRS. Additionally, TaxNow scans your IRS transcripts for new changes and events, including both ERC refund and audit flags, and will send users real-time alerts to notify them of these transactions.

These alerts are particularly important as thousands of businesses in January 2024 received a Letter 6612 alerting them that their ERC claim is under audit and on hold (so called “30-Day Letters”). These 30-Day Letters are accompanied by Form 4564, requiring the taxpayer to provide detailed documentation supporting eligibility and respond to multi-part questions within approximately 30 days of receiving the letter, else risk having their ERC claim be automatically disallowed. TaxNow’s proactive notification system alert ERC claimants ahead of these types of IRS examinations, which are typically communicated through traditional paper mail and may often be substantially delayed or lost in the mail.

Additional ERC Related Services

In addition to the base service, Sagemont Advisors can assist ERC claimants with additional services to expedite, troubleshoot, or otherwise defend or resolve an ERC claim:

  • Expediting Services – Sagemont has a variety of methods and approaches to potentially expedite the processing of an ERC claim, which may include enlisting the assistance of a local Congressperson, the Taxpayer Advocate Services (TAS). Clients experiencing refund delays in excess of six months may be eligible to pursue these extraordinary measures to expedite the processing of claims.
  • Troubleshooting Services – Errors related to ERC claims, whether perpetuated by the ERC claimant, their service provider, or even the IRS, are frequently uncovered during a Red Flags Review. Sagemont’s team of seasoned tax and legal professionals have decades of combined experience in tax resolution and advisory services and can liaise with the IRS to address a variety of errors or mistakes that may arise pursuant to an ERC claim.
  • “Second Look” Services – With the ERC Withdrawal and Voluntary Disclosure Program (VDP) in place, the clock is ticking for businesses to reconsider whether their initial ERC claim was appropriately evaluated and calculated according to the statutory rules and IRS sub-regulatory guidance. Furthermore, given the condensed timeline to turnaround supporting documentation on a 30-Day Letter, it is incumbent upon eligible taxpayers to make a proactive effort to get their ducks in a row prior to receiving such Letter. As a reminder, the IRS has minimal analytics available to discern eligible ERC claims from ineligible ERC claims without requesting the supporting documentation from the taxpayer, and therefore, even strongly eligible claims are being questioned and risk disallowance should the required documentation not be readily available.
  • Audit-Defense Services – Whether pursuant to a 30-Day Letter or a field examination, Sagemont Advisors team of internal CPAs and tax attorneys with real-world IRS tax controversy experience are ready and able to assist businesses that have been selected for an ERC examination. Our team of former big-firm advisors are not only experts in the ERC, but also bring many years of IRS audit experience to the table. Sagemont’s team has also received widespread praise in the ERC community for their September 2023 release of “The Practical Guide to Navigating an Employee Retention Credit Audit,” which has received thousands of downloads to date.

Get Started Today

In Closing…

If you think you have worked with an inexperienced provider, are concerned about your underlying eligibility, or like many others, simply want to attain the status of your ERC refund, Sagemont Advisors is here to help. Sagemont Advisors can provide you with an ERC Status Update and Red Flags Review, along with real-time “ERC Tracking” through TaxNow. To the extent that there are any issues identified on your Red Flags Review, or are later picked upon a TaxNow Alert, our team of CPAs and attorneys can proactively troubleshoot your file with the IRS to avoid surprises or disappointment.
Whether you need a qualified advisor to substantiate eligibility of your previously filed ERC claim through a “Second Look,” or defend against a potential or active ERC audit, the guidance of seasoned professionals, namely CPAs and tax attorneys, is indispensable. A team of experts at Sagemont Advisors is here to help you navigate all things ERC, including through the intricate process of eligibility and/or representation under IRS audit.

Our leadership team has a profound understanding of the tax code and ERC laws / guidance and are one of the few advisory firms to have both CPAs and tax attorneys under the same roof. We encourage you to reach out to one of our advisors today to explore how we can assist you or your clients.

Written By:


Kenneth Dettman, CPA

Chief Executive Officer & Managing Director
Kenneth Dettman, CPA

Kenneth Dettman, CPA

Chief Executive Officer & Managing Director
Kenneth (“Kenny”) Dettman, CPA, CEO and Managing Director, leads Sagemont Advisors with 15 years of complex tax advisory experience. He is considered a pioneer and innovator in the tax industry, having both worked extensively as a client-focused tax advisor, as well as launching early stage tax and compliance technology companies. Kenny was previously a tax partner at a global top 25 consulting firm, Alvarez & Marsal (“A&M”),...
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