Stenson Tamaddon, LLC Files Motion for Preliminary Injunction Against IRS Moratorium on Employee Retention Credit Claims

PHOENIX, June 4, 2024 /PRNewswire/ -- Stenson Tamaddon, LLC (StenTam), a firm offering technology-enabled financial solutions that provide accurate and compliant tax credit filings, has filed a motion for a preliminary injunction against the United States Internal Revenue Service (IRS) in the United States District Court for the District of Arizona.

The motion challenges the IRS' recent moratorium on processing Employee Retention Credit (ERC) claims, arguing that the suspension is unlawful and harmful to businesses nationwide. The ERC was established under the CARES Act of 2020 as a refundable payroll tax credit aimed at helping businesses survive economic disruptions caused by the COVID-19 pandemic.

Despite Congress' clear mandate for the IRS to process ERC claims, the agency announced an indefinite moratorium on new claims received after September 14, 2023. Since then, the IRS has stopped processing all ERC claims, leaving thousands of businesses without the financial relief to which they are entitled under the law.

Stenson Tamaddon's motion asserts that the IRS moratorium violates statutory obligations imposed by Congress. The motion emphasizes the following points:

1. Statutory Duty: The CARES Act and subsequent amendments clearly mandate the IRS to process ERC claims. The statute uses mandatory language, specifying that eligible employers "shall" receive credits and refunds.
2. Lack of Authority: The IRS lacks the legislative power to unilaterally suspend the ERC program. Any changes to the statutory requirements must be enacted by Congress, not imposed by administrative action.
3. Irreparable Harm: The moratorium causes significant financial harm to businesses that depend on ERC refunds to sustain their operations. Stenson Tamaddon and its clients face immediate and irreparable economic losses due to the IRS' inaction.
4. Public Interest: It is in the public interest for the IRS to comply with the law and ensure that businesses receive the financial support intended by Congress. The continuation of the ERC program is vital for the economic stability of small businesses across the country.

"It's our belief that the IRS' moratorium on processing ERC claims is not only unlawful but also detrimental to the thousands of businesses that rely on these credits for their financial survival," remarked Eric Stenson, CEO of Stenson Tamaddon. "Our goal with this motion is to compel the IRS to fulfill its statutory duty and resume the processing of ERC claims, thereby providing critical relief to businesses in need."

The motion requests that the court issue a preliminary injunction to halt the IRS moratorium and mandate the immediate resumption of ERC claim processing. An oral argument on the motion is anticipated, and Stenson Tamaddon remains committed to advocating for the rights of businesses affected by the IRS' actions.

About Stenson Tamaddon
At Stenson Tamaddon, we are highly focused on serving our clients with tax and other business resources commensurate with a professional services organization. Using technology to solve complex problems, enhance compliance and deliver enterprise-level solutions to small- and medium-sized businesses are our founding principles. For more information, visit http://www.stentam.com.

For more information, please contact:
Eric Stenson
Chief Executive Officer
Stenson Tamaddon
206-995-1220
[email protected]
www.stentam.com 

Note to Editors: For additional information or to schedule an interview with a representative from Stenson Tamaddon, please reach out to the contact provided above.

SOURCE Stenson Tamaddon