IRS Tries to Further Limit ERC Claims under Governmental Order Test


 
Congress took steps to protect American businesses and workers during the COVID pandemic, such as creating the Employee Retention Credit (“ERC”). The IRS, tasked with implementing the ERC, issued various types of guidance. It now relies on such guidance in reviewing, and frequently denying, ERC claims. This is particularly true when it comes to taxpayers seeking ERCs on grounds that their businesses were suspended because of a governmental order. This article, the latest in a growing list, summarizes the main laws and analyzes multiple IRS sources regarding how to treat ERC claims based on governmental orders.

About Hale E. Sheppard
HALE E. SHEPPARD, Esq. (B.S., M.A., J.D., LL.M., LL.M.T.) is a partner in the Tax Controversy Section of Chamberlain Hrdlicka.  He defends clients in tax audits, tax appeals, and Tax Court litigation, covering both domestic and international issues.

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