Continued Worker Credit Freeze Could Push Cos. to Court
Tax attorney Joshua Odintz was cited in a Law360 article exploring how companies are responding to the wait times for the IRS to process their employee retention credit (ERC) refund claims. The IRS announced in June that it would continue a moratorium on processing new claims because of the amount of fraud discovered; according to Commissioner Daniel Werfel, most of the claims processed at that point were either suspect or fraudulent on their face and the agency would pivot toward processing low-risk claims. The announcement has sparked speculation about whether companies will choose to file lawsuits to force the government to review their claims on court timelines. Mr. Odintz noted suits come with costs, as well as the requirement to fully prove claims in court. However, he added that for employers with more straightforward claims — whose "issues are plain vanilla and they've just gotten stuck in the pile" — a lawsuit could allow a government lawyer to resolve the matter without a trial.
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