George Hani and Jorge Castro Comment on Delays in IRS Quick Refund Claims and the Impact on Businesses in Law360 Tax Authority
Subtitle
"IRS Quick Refund Delays Risk Harming Struggling Businesses"
Law360 Tax Authority
George Hani and Jorge Castro, Members at Miller & Chevalier, weighed in on current delays at the IRS processing "quick refund" claims (which are generally processed by the IRS within 90 days) and the impact on businesses. Castro noted that the IRS is currently taking more than 10 months to process these refunds based on discussions with the agency. While he said he recognized the challenges the pandemic has imposed on the IRS, the delays are particularly challenging for businesses relying on the refunds. George Hani noted that Congress intended for last year's COVID-19 relief law to get cash quickly to struggling businesses, and the delays were making that difficult. "The CARES Act modified the statute to do what it could to inject cash back into the economy — put cash in these taxpayers' hands — and the delays undermine that objective," Hani said.