Florida Education Nonprofit Sues IRS Over Denied Covid-19 Claims

A Florida nonprofit says the IRS improperly denied it Covid-19-era tax credits and is suing the agency in federal court to recover more than $3.8 million.

River City Education Services, which owns and operates a charter school in the northeastern part of the state, applied for employee retention credits for the first two quarters of 2021. The ERC program provided incentives to employers who kept workers on their payrolls during the lockdowns of the pandemic.

The IRS has long struggled to process ERC claims, with many still outstanding years later. A Government Accountability Office report from earlier this ...