Tampa Law Firm Addresses National Rise in Employee Retention Credit Collection Lawsuits

Chemere Ellis, PLLC is reporting a rise in collection lawsuits filed in Florida courts regarding Employee Retention Credit (ERC) preparation services. These legal actions target businesses nationwide that engaged third-party firms to assist with pandemic-era tax credit filings. Many of these disputes involve contested fee structures and forum-selection clauses that mandate legal proceedings in Florida. The firm is currently advising business owners on strategies to respond to these claims, including the evaluation of contract enforceability and payment calculation accuracy.

The increase in ERC-related litigation highlights the legal complexities associated with third-party tax credit recovery services. Many small and mid-sized businesses contracted with specialized firms to navigate pandemic relief programs, often signing agreements containing forum-selection clauses. These provisions can force businesses located outside of Florida to defend themselves in state courts, potentially creating significant logistical and financial burdens. Legal disputes in this sector often center on the validity of contracts, the authority of the individual who signed the agreement on behalf of the company, and the transparency of fee calculations. As these cases proceed, courts are increasingly tasked with determining whether the services provided align with the contractual obligations and the regulatory requirements established during the pandemic relief period.

This trend underscores the necessity for businesses to conduct rigorous due diligence when entering into service contracts with third-party consultants, particularly those involving contingent fee structures. The reliance on standardized agreements without legal review has exposed many organizations to litigation risks years after the initial credit filings were processed. Industry observers are monitoring how Florida courts interpret these specific contract disputes, as the outcomes may set precedents for future litigation involving similar business-to-business service agreements. Businesses are encouraged to examine their internal records to verify the legitimacy of the services performed and to confirm whether the agreements being enforced were properly authorized by authorized corporate officers at the time of execution.