Oil Services Company’s Suit Seeks Millions in CARES Act Refunds

Lightning Oilfield Services Inc. says the Internal Revenue Service likely issued a mislabeled credit instead of granting its employee retention credit claims under the Coronavirus Aid, Relief, and Economic Security Act, in a suit seeking millions in refunds.

The CARES Act created an employee retention credit to encourage employers to keep employees on their payroll during the pandemic.

The company, which provides transportation services for the oil and gas industry, says the IRS issued a “HIRE credit” of $925,672 for the first tax quarter of 2021. But the IRS denied its employee retention credit claims in subsequent quarters, according to ...