Stenson Tamaddon Files Lawsuit Against IRS Over Employee Retention Credit

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Stenson Tamaddon, a company specializing in technology-enabled financial solutions, has recently filed a lawsuit against the United States Internal Revenue Service (IRS) and other related organizations. The lawsuit seeks declaratory and injunctive relief, as well as a writ of mandamus, alleging that the IRS violated the Administrative Procedure Act (APA) by enacting legislative rules without following proper procedures.

The complaint specifically targets the IRS’ “Notice 2021-20,” which imposed significant restrictions on the eligibility criteria for the Employee Retention Credit (ERC) payouts. Stenson Tamaddon claims that these restrictions were unfair to businesses entitled to the credit and that the IRS failed to comply with specific statutes while implementing them.

“The IRS has gone beyond its authority and neglected proper procedures, resulting in unfair limitations on businesses that deserve the Employee Retention Credit,” explained Eric Stenson, CEO of Stenson Tamaddon. “Our ultimate goal is to ensure that these businesses receive the support they are entitled to, and litigation was our last resort.”

The lawsuit argues that the IRS’ suspension of the ERC program was unauthorized and that the alleged abuse within the program does not warrant a complete cessation. Stenson Tamaddon seeks a writ of mandamus to compel the IRS to resume processing refund claims for their clients, which would be a positive development for businesses affected by the IRS’ actions.

Stenson Tamaddon is committed to upholding the rights of businesses seeking ERC payouts and holding the IRS accountable for its actions. By leveraging technology to provide accurate and compliant tax credit filings, the company aims to ensure that small- and medium-sized businesses have access to enterprise-level solutions.

For more information, please contact:
David Slepak
Chief Marketing Officer
Stenson Tamaddon
Phone: 480-747-1621
Email: [email protected]
Website: www.stentam.com

About Stenson Tamaddon
Stenson Tamaddon is a professional services organization dedicated to providing tax and business resources to its clients. Through the use of technology, the company solves complex problems, enhances compliance, and offers enterprise-level solutions to small- and medium-sized businesses. For more information, visit http://www.stentam.com.

Note to Editors: To request additional information or schedule an interview, please contact the provided representative from Stenson Tamaddon.

While the article provides an overview of Stenson Tamaddon’s lawsuit against the IRS over the Employee Retention Credit (ERC), it does not include certain facts and information related to the subject. Here are some additional details, current market trends, forecasts, and key challenges or controversies associated with the topic:

Market Trends:
– The ERC was introduced as part of the CARES Act in response to the COVID-19 pandemic, aiming to provide financial support to businesses affected by the crisis.
– Many businesses initially relied on the ERC to retain their employees and mitigate the economic impact of the pandemic.
– However, the IRS issued Notice 2021-20, imposing stricter eligibility criteria for the ERC, which affected numerous businesses that were previously eligible.
– The IRS restrictions have created controversy and sparked legal challenges from companies seeking to access the credits.

Forecasts:
– It is projected that as the economy recovers from the pandemic, more businesses will return to operating at full capacity, potentially leading to a decreased demand for the ERC.
– However, the ongoing impact of the pandemic and the uncertainties surrounding the new variants may still result in a significant number of businesses needing the ERC to support employee retention.

Key Challenges or Controversies:
– One key challenge is the interpretation and application of the eligibility requirements for the ERC. The IRS must strike a balance between preventing abuse of the program and ensuring that deserving businesses can access the credits.
– The lawsuit filed by Stenson Tamaddon highlights the controversy surrounding the IRS’ implementation of Notice 2021-20. The outcome of this lawsuit can have significant implications for the IRS and affected businesses.

Advantages and Disadvantages:
– Advantages: If Stenson Tamaddon’s lawsuit is successful, it could compel the IRS to resume processing refund claims for their clients and potentially set a precedent for other businesses in similar situations. This could provide relief to businesses that have been unfairly restricted from accessing the ERC.
– Disadvantages: The resolution of the lawsuit may take time, hindering businesses’ access to the ERC in the interim. Additionally, if the court rules in favor of the IRS, it could solidify the stricter eligibility criteria and limit businesses’ ability to benefit from the credits.

For more information on tax and business resources provided by Stenson Tamaddon, you can visit their website: www.stentam.com.

Sources:
IRS website
Fox Business
CNBC