PHILADELPHIA - A Montgomery County law firm says the IRS hasn't paid up for tax breaks promised to businesses that stayed open during the COVID pandemic.
Ostroff Injury Law PC filed a lawsuit Aug. 8 against the United States of America in the United States District Court for the Eastern District of Pennsylvania, seeking a refund of $790,318.08 in internal revenue taxes for 2020 and 2021.
The plaintiff claims entitlement to Employee Retention Credits (ERC) under the CARES Act and Section 3134 of the Internal Revenue Code due to significant declines in gross receipts and partial suspension of operations caused by COVID-19-related government orders.
Despite filing appropriate claims, the IRS has not processed these refunds, the suit says. The law firm is also seeking statutory interest, litigation costs, and attorneys' fees.
Glen Frost of Frost & Associates represents the plaintiff.