Case: U.S. District Court Upholds IRS Use of FOIA Exemptions to Protect Guidance on Employee Retention Credit Examinations

The U.S. District Court for the Northern District of Alabama, Northeastern Division, held that FOIA Exemptions 7(A) and 7(E) protect from disclosure the IRS guidance on examining Employee Retention Credit claims that the taxpayer requested. Taxpayer, an attorney representing taxpayers in IRS disputes, sought IRS guidance issued to revenue agents for examining ERC claims under the CARES Act. The court found Exemption 7(A) applies because disclosure could interfere with pending and ongoing ERC examinations and refund litigation by revealing IRS strategy. The court rejected the taxpayer’s argument that the IRS must identify specific investigations, finding it sufficient that the IRS ...