NY Tax Prep Firm Unable to Get Damages for E-Filing Suspension

March 31, 2025, 3:32 PM UTC

A New York tax preparation business is unlikely to be able to recoup monetary damages from the federal government in a lawsuit over its suspended e-filing rights, a federal judge said.

SL Tax sued the US over the IRS’s alleged failure to provide notice before suspending the firm’s electronic filing identification numbers, constraining its ability to prepare taxes on behalf of its clients. Judge Natasha C. Merle of the US District Court for the Eastern District of New York, who previously rejected the firm’s request to preliminarily restore its filing rights, said in a March 28 order that any attempt ...

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