HIRE Coalition Launches National Awareness Campaign to Address Unfavorable ERC Provisions in Current Tax Legislation

WASHINGTON, DC, UNITED STATES, June 5, 2025 /EINPresswire.com/ -- The HIRE Coalition, a national alliance of tax professionals and small business advocates, has launched a campaign to raise awareness around recent legislative provisions related to the Employee Retention Credit (ERC) that could significantly impact millions of small businesses across the United States.

As part of the larger tax reform package known as the “One Big Beautiful Bill,” the proposed provisions include two key changes affecting ERC filers:

1. A retroactive change to the statutory ERC filing deadline — from April 15, 2025, to January 31, 2024 — could invalidate tens of thousands of claims made by small businesses after that date.

2. An extension of the IRS audit period for ERC claims through 2030 would increase uncertainty for business owners who received or are awaiting these funds, particularly as they seek financing, plan for growth or consider succession strategies.

These changes would apply retroactively, including to businesses that submitted claims in compliance with existing law and IRS guidance. The IRS continued to publish new ERC guidance through 2023 and 2024, and as recent as April 2025. In May 2025, the IRS reported that approximately $5.5 billion in ERC fraud had been identified — a small fraction of total claims, suggesting that the majority of filers acted in good faith.

“The purpose of this campaign is to ensure that business owners, tax professionals and policymakers understand the real-world implications of these provisions,” said Tim Parrish, a tax attorney and president of the HIRE Coalition. “Many of these businesses relied on or are anxiously awaiting ERC funds to recover from pandemic-related losses, and changing the rules after the fact raises serious concerns for taxpayer fairness.”

Organizations like Henrico CASA in Virginia, a nonprofit serving children through court-appointed advocates, have already submitted ERC claims under the assumption of an April 2025 deadline. “We followed the guidance and filed within the legally permitted timeframe,” said Executive Director Jeannine Panzera. “Retroactive changes undermine trust in the system and penalize those who did everything right.”

The National Taxpayer Advocate, an independent body within the IRS, named ERC the “#1 Most Serious Problem Facing Taxpayers” in its 2025 report to Congress. It recommended that the IRS process claims submitted after January 31, 2024 by July 31, 2025, or within six months of submission.

The HIRE Coalition's campaign will include direct outreach, public education, media engagement and digital advocacy to raise awareness of the issue. The organization encourages business owners to contact their senators and ask for a thoughtful review of the ERC section in the current legislation.

ABOUT THE HIRE COALITION

The HIRE Coalition is a 501(c)(4) nonprofit dedicated to improving employment-based tax policy and advocating for policies that help U.S. businesses hire, invest, retain, and expand. Its members include tax, law, and payroll firms representing over 100,000 small businesses nationwide. Learn more at https://hirecoalition.org.

Dr. Alexa D'Agostino
Hydro Media Group
+1 914-414-9314
alexa@hydromediagroup.com