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Wednesday, May 20, 2026

IRS Spells Out Criteria for Covid-19 Employee Retention Credit - Bloomberg Law

Employers must have orders from the Occupational Safety and Health Administration to close to prevent spreading Covid-19 to qualify for a pandemic tax credit, rather than relying on guidance, the IRS said in a memo released Friday.

“Generally, communications from OSHA are not considered ‘orders from an appropriate government authority that limit commerce, travel, or group meetings’” due to Covid-19, the Internal Revenue Service’s Office of Chief Counsel said in the memo, which was dated Oct. 18. The memo was released in response to an inquiry from an unidentified employer into whether businesses can rely on OSHA guidance on ...

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