Judges Doubt Firms’ Right to Fight IRS Tax Credit Screening Tool

Judges on a federal appeals court panel expressed skepticism during oral arguments Wednesday about whether two firms’ even have standing to challenge the IRS’ use of automated software called Disallowance During Processing to determine employee retention credit eligibility.

Judges sitting on the US Court of Appeals for the Ninth Circuit questioned how ERC Today LLC and Stenson Tamaddon LLC can halt the use of a tool the IRS utilizes to screen applications for the credit because whether they suffered “injury in fact” is unclear. Discussions circled around the significance of how both companies helped businesses apply for the Covid-19 related ...