IRS Can’t Process ERC Claims After Companies Sue, Judge Says

The IRS is no longer on the hook to examine Employee Retention Credit claims after a company sues over the delayed refund and the case is turned over to the Department of Justice, a Tennessee federal judge said.

Judge Curtis L. Collier of the US District Court for the Eastern District of Tennessee on Thursday denied a motion for partial summary judgment for Tennessee-based JPM Restaurant LLC. JPM sued last year for $338,100 in ERC refund claims for six quarters in 2020 and 2021 that the government hadn’t released to it.

A month after the lawsuit was filed, the government ...