Tri-State Memorial Hospital in Washington state has sued the federal government seeking $11.5 million in allegedly unpaid Employee Retention Credits.
The hospital claimed that it was entitled to the credits due to business disruption during the COVID-19 pandemic, which led to a partial business suspension.
Tri-State alleged that despite filing timely retention credit claims with the IRS, it had not received the refunds even after 16 months from the date of filing.
The lawsuit is part of a series of cases alleging delayed Employee Retention Credits for businesses impacted by the pandemic, with concerns raised about improper claims and delays by the IRS in processing refunds.