In my last Blog I briefly discussed three supply-chain disruption or impact questions. The purpose of this Blog is to discuss the “OSHA Position”. Under one of the IRS Notices, the following language was used to define “governmental orders”:
Orders, proclamations, or decrees from the Federal government or any State or local government may be taken into account by an employer as “orders from an appropriate governmental authority” only if they limit “commerce, travel, or group meetings (for commercial, social, religious, or other purposes) due to the coronavirus disease 2019 (COVID-19)” and relate to the suspension of an employer’s operation of its trade or business. Orders that are not from the Federal government must be from a State or local government that has jurisdiction over the employer’s operations.
The key words to focus on are: “due to the coronavirus disease.” Why is this important? Any order, proclamation, or decree in place prior to the COVID-19 crisis may not fall within the OSHA Position. Many email, TV commercials, radio commercials and social media ads that I have seen rely on what I call the “general duty clause” which is language enacted in 1970 that some ERC Companies rely on to say that any CDC, DHS or OSHA standard would blanketly apply to all businesses in the United States. What I have found is that many of the top law firms and accounting firms feel that this government mandate test was not meant to capture every business in the United States. Based on what I am seeing from the IRS, it appears that the IRS would agree.
With this being said, certain businesses that were either in geographical areas where state, local order(s) and or mandates requiring adherence to OSHA’s, CDC’s or DHS’s general duty clause may meet the protections granted under the general duty clause. In my next Blog I will discuss how the CDC, DHS, OSHA and supply-chain disruption or impact have been coupled together in making an ERC claim.
Tax problems are legal problems, and we solve both. If you or someone you know has an issue with paying their federal or state taxes and needs help to end their IRS nightmare, please contact Kent Brown at Strong & Hanni by either phone at (801) 532-7080 or email at: kbrown@strongandhanni.com or go to my personal Strong & Hanni webpage at: https://strongandhanni.com/attorneys/attorney-kent-brown/
