Because of the June 28, 2024, U.S. Supreme Court ruling which overturned the Chevron doctrine, the landscape for interpreting tax laws has shifted. This change could be a tremendous benefit for the position of the taxpayer in how courts address IRS interpretations, especially in complicated cases like those involving the Employee Retention Credit.
The Employee Retention Credit, or ERC, was introduced as a lifeline for businesses affected by the COVID-19 pandemic, offering financial relief to those who qualified. However, many “fly-by-night” companies filed falsified claims on behalf of their clients or simply filed unqualified claims on behalf of those businesses. These actions spurred the IRS to pause processing applications to filter out the bad actors.
Many businesses are still dealing with waiting to receive their ERC checks. Additionally, businesses are receiving rejection letters, with only 30 days to appeal, and/or audits of their ERC applications. The tax law firm of Moskowitz LLP, with its experienced tax attorneys, CPAs and other tax professionals with their deep knowledge in tax law and accounting, stands ready to assist companies and individuals combating these positions taken by the IRS.
Below, we outline three essential services Moskowitz LLP offers to businesses and individuals facing ERC-related issues:
Still waiting to receive ERC checks
ERC Rejection — with only 30 days to appeal
ERC Audit Representation
ERC Expediting Services
Many businesses still find themselves waiting to receive their ERC checks stuck in a backlog of pending massive applications. This is especially frustrating for companies and individuals that, by law, are entitled to receive payments with interest. At Moskowitz LLP, we understand the urgency of these situations, which is why we offer our “ERC Expediting” services to speed up the process, as much as possible.
Here’s how we can help:
Taxpayer Advocate Service Request: We can submit a request to the Taxpayer Advocate Service (“TAS”) on your behalf. TAS is an independent organization within the IRS that helps taxpayers facing financial difficulties due to delayed processing. Our team will handle the necessary application, correspondence, and follow-up communication in an effort to get the processing of your ERC checks plus interest prioritized.
Congressional Intervention: We can present your case to your congressional representative, highlighting the undue hardship these delays are causing your business and you. Congress passed this law, so we ask your Congressperson to make a “Congressional Inquiry” to the IRS to get the processing of your ERC checks plus interest prioritized.
Refund Litigation: We initiate refund litigation against the IRS in federal court to compel the IRS to prioritize your claim to avoid protracted litigation, and we ask the Court to reimburse your attorney fees and expenses to get the processing of your ERC checks plus interest prioritized.
The goal of these services is to move the IRS to process your claim very swiftly, allowing you to receive the funds you are owed plus interest without further delay.
ERC Rejection Assistance
If the IRS rejects your ERC claim you only have 30 days to appeal. We believe that the IRS, using computer software, has rejected many of these appeals without having the information to know if your claim was valid or not.
If your ERC claim has been rejected, Moskowitz LLP can assist in the following ways:
Review of Original Application: Our first step is to conduct a thorough review of your initial ERC application to determine if the IRS’s disallowance is justified. Many businesses and individuals may have been wrongfully denied in the IRS effort to weed out the cheaters and to get the processing of your checks prioritized.
Administrative Appeal: If we determine that your ERC application was valid, we will file an administrative appeal on your behalf. This process involves gathering additional documentation if needed, crafting a legal argument, and representing your case before the IRS. Our goal is to overturn the disallowance and to get the processing of your checks prioritized.
Litigation: Should the appeal not yield the desired result, our team is prepared to escalate the matter to litigation. We will represent your interests in federal court, challenging the IRS’s decision and fighting for your business’s rights as well as asking the Court to reimburse your attorney fees and costs and to get the processing of your checks prioritized.
Receiving a rejection letter can be daunting, but with Moskowitz LLP representing you, you can feel comfortable knowing you have highly experienced and caring tax attorneys representing your interests.
ERC Audit Representation
As the IRS intensifies its scrutiny of ERC claims, many businesses and individuals find themselves facing audits. These audits are part of the IRS’s broader effort to crack down on fraudulent claims, but they also sweep up legitimate businesses and individuals in the process that are fully entitled to receive their ERC checks. Audits can be a complex and intimidating process, especially when significant financial implications are involved.
Adding to this complexity is the June 28, 2024, U.S. Supreme Court ruling in Loper Bright Enterprises v. Raimondo, which overturned the Chevron doctrine that had allowed courts to give deference to IRS interpretations of ambiguous laws. The Supreme Court’s decision means that courts will no longer defer to the IRS’s interpretations when laws are unclear. This landmark ruling could open new avenues for challenging IRS decisions during ERC audits, as the judiciary now holds the exclusive role in interpreting tax laws without giving the IRS preferential treatment. This can be a tremendous benefit to every taxpayer!
Moskowitz LLP offers comprehensive audit representation services, including negotiation with the IRS. Our tax attorneys are experienced and skilled in negotiating with the IRS during an audit. We will advocate for the processing of your ERC checks plus interest to be prioritized.
Conclusion
ERC audits can have serious repercussions, but with Moskowitz LLP’s knowledgeable team of tax attorneys representing you, you can have confidence that we will protect the financial health of your business; obtain every benefit to which you are entitled within the bounds of the law; and successfully argue the full benefit from Loper, which rightfully overturned the Chevron doctrine.
If you’re facing issues with your ERC claim, it’s time to contact the tax attorneys at Moskowitz LLP at 888-TAX-DEAL or online at moskowitzllp.com.