IRS Adopts Bifurcation Policy for ERC Claims After Vensure Advocacy

The previous IRS processing standard acted as an all-or-nothing bottleneck for PEOs. Because claims were historically bundled, a single audit could freeze payments for thousands of companies simultaneously, effectively trapping capital that had been pending since early 2021. By successfully lobbying for a bifurcated approach, Vensure has enabled the IRS to release valid funds without waiting for the resolution of entire claim batches.

Kara Childress, President and CFO of VensureHR, noted that the change removes structural barriers for businesses that have faced financial strain while waiting for credit processing. For many firms, these funds were essential for operational stability, and the delay had forced some to incur debt or pause hiring. This policy update stems from Vensure’s broader advocacy campaign in Washington, D.C., which began in 2025 to combat a backlog that once included nearly 600,000 unprocessed claims. With this new framework, the IRS can now isolate contested elements of a filing, ensuring that approved payouts reach businesses with significantly greater speed.