ERTC Express: ERC Processor Taking 15–30% Cuts

Identity and role

ERTC Express LLC is a Wyoming limited liability company registered to do business in New York. In an October 2025 complaint it described itself as "a leading national provider of federal tax credit processing services for small and mid-sized businesses." Its clients, it said, "include family-owned restaurants, dental practices, construction contractors" and others.

Pandemic-relief role

The Employee Retention Credit (ERC) was claimed on amended payroll returns and paid by Treasury check. ERTC Express's client engagement agreement, filed in a Florida fee dispute, sets a "consulting fee equivalent to between fifteen percent (15%) to thirty percent (30%) of ERTC credits," with three ways to pay:

15 percent, due within five business days of notice that the Form 941-X was complete, before any refund.
25 percent with a 5 percent deposit, the rest paid when the IRS paid.
30 percent with no deposit, the rest paid when the IRS paid.

The agreement makes the third option the default if the client does not choose within five business days. On the deferred options the client signed two IRS Forms 8822-B, one to open a lockbox address for the refund and one to close it, and there was "a minimum initial deposit fee of $5,000 on all deferred payment arrangements."

One client's complaint shows the lockbox at work. CSRA Probation Services of Georgia alleged that the IRS deposited $1,800,944.83 for it, including $85,083.54 of interest, "into a lock box account controlled by ERTC Express" around July 17, 2023, and that ERTC Express deducted $514,758.39, 30 percent of the credit excluding interest, before sending the rest in two checks. Those are the client's allegations.

Financing the fees

The deferred plans left ERTC Express owed money until the IRS paid. Under a receivables purchase agreement dated March 16, 2023, TransPecos Banks, SSB paid ERTC Express $12,500,000 for fee receivables worth $14,005,604.83, a 10.75 percent discount, according to the bank's amended complaint in the Western District of Texas. The agreement required ERTC Express to buy back any receivables still unpaid after 12 months; the bank alleged it had not. Those are the bank's allegations.

The lockbox dispute

In October 2025 ERTC Express sued Regulus Group, a subsidiary of Exela Technologies (now XBP Global Holdings), which had run its lockbox, accusing it of "converting ERTC Clients' refund checks, and employing coercive tactics." It said a new processor had handled "more than 900 checks, with an average size of approximately $30,000, totaling more than $28 million" since March 2025, and that "ERTC Clients are waiting for approximately $590 million dollars in tax refund payments to be processed." Those are ERTC Express's own allegations in a verified complaint.

Legal status / controversies

TransPecos Banks v. ERTC Express (W.D. Tex. No. 5:24-cv-01463): breach of the receivables purchase agreement.
CSRA Probation Services v. ERTC Express (Columbia County, Ga., removed to S.D. Ga. No. 1:25-cv-00003): a client's challenge to fees taken from its refund.
ERTC Express v. Regulus Group and XBP Global Holdings (S.D.N.Y. No. 1:25-cv-08490): the lockbox dispute.
ERTC Express v. T & M Appliance & Air (M.D. Fla. No. 8:26-cv-01125): ERTC Express sued a heating and air company over a fee; in April 2026 the company answered and counterclaimed, saying ERTC Express "unilaterally chose the highest fee percentage" and invoiced 30 percent of the credits it received for six quarters.
We found no rulings on the merits in these cases in the records we reviewed, and no government enforcement action against the firm.

Where they are now (2025–2026)

The April 2026 counterclaim is the latest record we found.

ERTC Express