Schumer, Gillibrand, Goldman Secure $50 Million in IRS Employee Retention Tax Credit Refunds for 585 Small Businesses

 

 

Washington, D.C. –  Congressman Dan Goldman (NY-10) today applauded the IRS’ recent disbursement of $50 million in long delayed Employee Retention Tax Credit refunds, $20 million of which were returned to 289 New York-based small businesses. The release follows a letter Congressman Goldman and Senator Chuck Schumer (D-NY) sent to former IRS Commissioner Daniel Werfel with Senator Gillibrand (D-NY) and 8 of their New York congressional colleagues urging the agency to expedite the processing and resolution of legitimate Employee Retention Credit (ERC) claims. Justworks, a New York-based small business advocate and certified Professional Employer Organization (PEO), has also been working with the IRS to release the delayed funds. 

 

"Small businesses are the lifeblood of New York City, and I'm proud to have helped secure over $50 million in delayed tax credits for small businesses nationwide, including $20 million for nearly 300 businesses across our city and state," Congressman Dan Goldman said. "These delays have cost businesses in my district hundreds of thousands of dollars, and I will continue pushing to ensure the IRS clears its $10 billion ERC backlog and returns these funds to the legitimate small businesses that are still owed. Small businesses kept New York City afloat during the pandemic, and I will keep pushing to cut red tape and help them thrive.

 

U.S. Senator Charles Schumer said, “At the height of the COVID-19 pandemic, New York’s small businesses were struggling to stay afloat and the Employee Retention Credit we created in the CARES Act provided a lifeline to many small businesses that allowed them to keep their employees on the job. In December, we pressed the IRS to process delayed low-risk ERC claims ASAP. The IRS is now disbursing ten-of-millions in long overdue funds to hundreds of New York small businesses, and we’ll keep pushing for the IRS to swiftly resolve the backlog of ERC claims.” 

 

U.S. Senator Gillibrand said, “Small businesses are the backbone of the American economy, driving job creation, fostering product diversity and consumer choice, and strengthening our communities. Through the Employee Retention Tax Credit program, over $20 million will be returned to New York's small businesses, helping to stimulate our state’s economy. These long overdue credits will provide much needed relief to small businesses across New York State, helping to ensure that our small business community can continue to recover and thrive after the devastating COVID-19 pandemic. I am proud to have worked alongside my distinguished colleagues, Congressman Goldman and Senator Schumer, to secure these funds, and I look forward to our continued partnership to help support New York's small businesses.” 

 

Mike Seckler, CEO of Justworks, said, “This is a huge win for small businesses, but we’re not done. Every dollar of the ERTC was promised to businesses that did what they were asked and stepped up to keep their employees on payroll during the pandemic. We fought to get $50 million released, which is now rightfully reaching 585 of our customers, including about 280 in New York, and we will keep pushing until every eligible Justworks customer receives the funds they are owed.” 

 

The ERC program has been a vital lifeline for small businesses throughout the U.S. and in New York’s 10th District. Created by the CARES Act and further expanded by the Consolidated Appropriations Act of 2021 and the American Rescue Plan, this refundable tax credit helped small businesses retain their workforce during the COVID-19 pandemic. 

 

The IRS previously announced a moratorium on processing ERC claims submitted after Sept. 14, 2023, to give the agency time to review and analyze a large study group of ERC claims. On August 8, 2024, the agency announced it completed its review and would begin processing claims filed between September 14, 2023, and January 31, 2024. According to its review, the agency identified 10-20% of claims as high-risk, 60-70% of claims as having an unacceptable level of risk, and 10-20% as low-risk. Congressman Goldman has been focusing on these low-risk claims to ensure legitimate small businesses receive the relief they are owed. 

 

Congressman Dan Goldman has made assisting small businesses a key focus of his time in office. 

 

In December of 2024, Goldman convened a townhall workshop with New York City Councilmember Alexa Avilés, Pace University Small Business Development Center (SBDC) Director Andrew Flamm, and partnering organizations to inform small business owners of the resources available to support them in New York City. The small business workshop connected the primarily minority-owned small businesses in Sunset Park to resources available to help boost their businesses. 

 

In the Spring of 2024, Goldman cosponsored the bipartisan ‘Employee Equity Investment Act’ (EEIA), which would incentivize employee business ownership by reducing the cost barriers that small business owners currently face when transferring ownership to their employees and empower owners to preserve family legacies and community jobs. 

 

Additionally, the Congressman cosponsored the ‘Child Care Small Business Insight and Improvement Act’ to increase U.S. Small Business Administration support for childcare small businesses. This bill would expand the U.S. Small Business Administration’s role in supporting for-profit childcare small businesses across the country.