Stenson Tamaddon Files Lawsuit Against IRS and Treasury Department Over Employee Retention Credit (ERC) Program

PHOENIX, May 16, 2024 /PRNewswire/ -- Stenson Tamaddon, a firm offering technology-enabled financial solutions that provide accurate and compliant tax credit filings, today announced that it has initiated a lawsuit in the Federal District Court against the United States Internal Revenue Service (IRS), the United States of America, the U.S. Department of the Treasury, IRS Commissioner Daniel Werfel, and Treasury Secretary Janet Yellen. The lawsuit seeks declaratory and injunctive relief and a writ of mandamus.

In the complaint, Stenson Tamaddon alleges that the IRS violated the Administrative Procedure Act (APA) by enacting legislative rules without following proper procedures, specifically concerning "Notice 2021-20." This notice significantly restricted the availability of Employee Retention Credit (ERC) payouts by narrowing the eligibility criteria. Furthermore, the lawsuit argues that the IRS' suspension of the ERC program was unauthorized and that the rate of abuse within the program does not justify a complete cessation.

"We believe that the IRS has overstepped its authority and failed to follow proper procedures, resulting in unfair restrictions on businesses entitled to the Employee Retention Credit," explained Eric Stenson, CEO of Stenson Tamaddon. "Our goal is to ensure that these businesses receive the support they deserve, this litigation is a last resort."

The lawsuit contends that the IRS violated the major questions doctrine, acted arbitrarily and capriciously, and failed to adhere to specific statutes. Stenson Tamaddon seeks a writ of mandamus to compel the IRS to resume processing refund claims, which would be a positive development for their clients. The company is committed to ensuring that the rights of businesses seeking ERC payouts are upheld and that the IRS is held accountable for its actions.

For more information, please contact:

David Slepak
Chief Marketing Officer
Stenson Tamaddon
480-747-1621
[email protected]
www.stentam.com 

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.

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