During recent testimony before the Senate Finance Committee, IRS Commissioner Danny Werfel used the challenges of processing Employe Retention Tax Credit (ERTC) claims as an example of the benefits of increasing the digital processing and filing of tax returns. Werfel told the committee that the IRS’s progress “is hampered by the fact that amended returns (Forms 941-X) from ERTC applicants come in on paper and require time-intensive manual processing.” As of Dec. 9, 2023, the IRS has more than 1 million unprocessed Forms 941-X. Werfel explained to the committee that a scanning process is being developed for pre- and post-moratorium paper returns to digitize information from pending claims.

