Flood of Pandemic Tax Credit Claims Justifies Filters, IRS Says

The IRS’s use of automated filters to process requests for tax credits is a practical necessity given a “deluge” that increased employer refund filings by almost 10,000% during the Covid-19 pandemic, the agency told a federal court.

The agency justified the use of the tools to speed up processing for employee retention credits, a pandemic-era tax incentive that has seen a massive number of claims from businesses nationwide, in a response brief filed Jan. 31 at the US District Court for the District of Arizona.

Two companies that help businesses file ERC claims, Stenson Tamaddon LLC and ERC Today LLC, ...