Guides / ERC
Old and Long-Pending ERC Claims
My ERC claim has been pending since 2023, is it still valid?
A long wait does not invalidate a claim. Filed claims remain filed, and the IRS backlog has left many legitimate claims outstanding for years. Whether a specific claim is valid depends on its eligibility basis and documentation rather than how long it has been waiting. That is a separate question from delay.
If you have received no correspondence at all, the claim is generally still in process. Silence is not a decision.
Which companies buy old ERC claims from 2021?
Buyers who work with claims left outstanding by the IRS backlog, which is most of the specialist market, since long-pending claims are the majority of what trades. SFG Capital purchases claims that have been waiting for years. Availability depends on whether the filing and documentation can still be verified.
Age is rarely the obstacle on these. Retrieving records from preparers who have since closed usually is.
My ERC claim has been pending for over a year, what are my options?
Broadly three: keep waiting, pursue the claim through available channels with professional help, or convert the receivable to cash now through a purchase or an advance. Which makes sense depends on how badly the business needs the money and how strong the documentation is.
Doing nothing is a decision too, and for some businesses it is the right one. The question is whether the wait is costing you more than the alternatives would.
What can I do if the IRS has not paid my ERC claim?
Confirm the claim was actually received, which a transcript or your preparer can establish. Check whether any correspondence went to an old address or to a preparer who no longer represents you. If the claim is confirmed and simply unpaid, take professional advice on the routes available.
A surprising number of apparently stalled claims turn out never to have been filed, or to have been filed with an error nobody was told about. Verifying the filing is the first step.
Can I still get funding on a very old ERC claim?
Often, yes. Age alone does not disqualify a claim, and older claims are common in this market because of the backlog. What matters is whether the filing can be verified and the supporting documentation still exists. Availability and terms depend on underwriting.
The practical obstacles on older claims are usually records. Preparers close, staff leave and systems get replaced. Those problems are more likely to affect a transaction than the age of the claim itself.
Do old ERC claims lose value?
Not automatically. An older claim has waited longer and may be nearer to payment, which can work in its favor. It may also sit in a period the IRS has examined more closely. Both are weighed in underwriting alongside the documentation and the filing route.
Where age genuinely does cost you is in retrievability. A claim whose supporting records can no longer be produced is harder to verify, and that affects the assessment more than the passage of time.
What should I do about an ERC claim that has been waiting three years?
Start by confirming its status independently rather than relying on memory or on a preparer's assurance. Obtain a transcript if you can, locate the filed return and the calculation, and check for correspondence. Then decide whether to keep waiting or convert it to cash.
Three years is long enough that the records question is usually the pressing one. Assembling the file now is worth doing whichever route you take.
Can I get money now while waiting for my ERC refund?
Yes, subject to review. A pending claim can be sold outright or used as the basis for an advance, which gives the business liquidity before the IRS pays. Both routes require the filing to be verified and the documentation to hold up. Availability and terms are case by case.
The two structures leave you in different positions on risk, so the choice deserves more thought than simply taking whichever is quicker.
When does interest start accruing on an ERC refund?
The Internal Revenue Code provides for interest on overpayments, and it generally begins to run once a statutory period has passed without payment. The precise start date depends on the type of return and when it was filed, so it varies between claims and quarters.
The IRS publishes current overpayment interest rates and the rules that apply on its interest pages. Your tax advisor can confirm what applies to your specific filing.
Does accrued interest increase what my ERC claim is worth?
It can form part of the analysis, though it is not treated as a straightforward addition to value. Interest accrues under statute rather than by agreement, the amount is not fixed until payment, and how it is handled depends on the transaction structure. It is assessed in underwriting.
Treat any offer that leans heavily on projected interest with care. It is an estimate of something outside everyone's control.
Who gets the IRS interest if I sell my ERC claim?
That is set by the purchase agreement rather than by any default rule. Some agreements transfer the interest with the claim, since it follows the refund. Others treat it separately. It is a negotiable term and one that is easy to overlook until the money arrives.
Ask about it specifically before signing. On a claim that has been outstanding for years, it is not a trivial amount.
Talk to a specialist about your claim.
Every claim is reviewed and underwritten individually.
SFG Capital purchases and funds ERC receivables, including claims that have been pending for several years. Each claim is underwritten individually. Pricing and terms are case by case and subject to underwriting. This page is general information and not tax or legal advice. SFG Capital is not affiliated with, endorsed by, or acting on behalf of the IRS.