Partner Thomas Linguanti spoke with Law360 about the top federal tax cases to watch in the remainder of 2024, including a case brought by tax advisory firm Stenson Tamaddon LLC against the Internal Revenue Service (IRS) after the agency announced a moratorium on processing employee retention tax credit claims in response to the rise of questionable claims submitted to the agency ever since the temporary credit was established in 2020 during the COVID-19 pandemic.
Stenson Tamaddon, which helps businesses apply for the credit, claims the moratorium was not properly vetted under the Administrative Procedure Act (APA). This makes the case significant as APA claims have become a popular litigation tactic against IRS measures.
Tom noted that the Stenson Tamaddon case, however, is more narrow than past APA suits against the IRS, as the tax credit was created to immediately address a problem during the pandemic and the IRS had to implement its provisions right away.
"This is the kind of case, given the circumstances, that may go too far," Tom told Law360. "It's a narrow statute for a limited period of time addressing a very narrow problem."