IRS Can Continue Using Employee Retention Credit Screening (1)

The Internal Revenue Service can continue using automated software to screen Employee Retention Credit applications after a federal judge in Arizona disagreed that the plaintiffs—businesses that help companies file the claims—had standing to sue or that they had the right to bring a due process case on behalf of their clients.

Denying their motion for a preliminary injunction, Judge Stephen M. McNamee of the US District Court for the District of Arizona on Monday wrote that the plaintiffs’ “financial interest in their clients’ approved tax claims is not a constitutionally protectable property interest.”

The tax break, created in IRC Section ...