ASA College, Inc. has filed a lawsuit against the United States, seeking nearly $6 million in federal tax refunds related to the Employee Retention Credit (ERC) for 2021.
The case centers on ASA College’s claims for ERC refunds totaling $5,972,225.51 for three tax periods ending March 31, June 30, and September 30 of 2021. The complaint states that the college filed timely refund claims with the IRS on May 3, 2023. Although initial refund checks were issued on August 7, 2023, ASA College alleges that they were subsequently canceled without proper notification or explanation. The college contends that it never received the checks because they were sent to incorrect addresses or potentially stolen and cashed by unknown third parties.
ASA College asserts that the IRS’s handling of the refunds violated its rights under federal tax law and seeks judicial intervention to compel payment. The complaint emphasizes that the college complied with all necessary filings and payments during the relevant periods and claims that it has suffered damages due to the failure to issue timely refunds.
The lawsuit cites provisions of the U.S. tax code related to the ERC, a credit established under the CARES Act and subsequent legislation to provide financial relief to businesses affected by the COVID-19 pandemic.
ASA College is seeking judgment for the specific ERC refund amounts claimed: $1,905,811.57 for March 31, 2021; $2,212,860.69 for June 30, 2021; and $1,853,553.25 for September 30, 2021. The college also requests interest on these amounts and compensation for legal costs.
The plaintiff is represented by attorneys Michael P. Richter of Frost Brown Todd LLP, along with Robert C. Webb and Justin L. Yarnell, who are expected to appear pro hac vice. The case was filed in the United States District Court for the Eastern District of New York under case ID number 1:25-cv-04412.