Employers can claim a pandemic-era tax credit worth up to $26,000 per worker if a government order fully or partially suspended their operations. The IRS argument, detailed in a recently published memo, is the latest sign of the tax agency’s tough line in audits of the employee retention credit, or ERC. The IRS detailed its argument on OSHA guidelines more than three years after Congress created the credit in 2020. Firms using the OSHA argument, at least in part, include Synergi Partners of South Carolina and Stenson Tamaddon. Some employers will hear about the IRS memo and decide that they don’t want to take a stance contrary to the tax agency’s litigating position.

Source: Wall Street Journal November 09, 2023 18:47 UTC