Staffing Firm Says IRS Stiffed It on $20 Million Employee Credit

A Cleveland-area health-care staffing firm wants the US District Court for the Northern District of Ohio to compel the IRS to pay out over $20 million in employee retention credits, according to a new complaint.

First Source Employee Management sued over ERC refund claims for two quarters of 2021 that it says it qualified and applied for but that the IRS hasn’t remitted—$11.1 million and $9.1 million for the first and second quarters of 2021, respectively. The company, which provides outsourced staffing for skilled nursing, hospice and assisted living facilities, also wants the court to enjoin the IRS from enforcing ...