Our Client Base
StenTam has proudly supported more than 7,500 small businesses across all 50 states. Our clients represent the diverse economic fabric of the United States, spanning nearly every major sector of commerce.
Our compliance engine and eligibility analysis were designed to handle the specific operational realities of these diverse industries:
- Healthcare & social assistance (private)
- State & local government
- Retail trade
- Accommodation & food services
- Manufacturing
- Professional, scientific & technical services
- Administrative/support & remediation
- Construction
- Finance & insurance
- Transportation & warehousing
- Wholesale trade
- Educational services (private)
- Information & Technology
- Management of companies & enterprises
- Real estate & rental & leasing
- Arts, entertainment & recreation
- Agriculture, forestry, fishing & hunting
- Utilities
- Mining, quarrying & oil/gas extraction
Technology-First Compliance
Calculating the ERC is mathematically complex, particularly regarding the interaction with the Paycheck Protection Program (PPP). The CARES Act strictly prohibited "double-dipping"—using the same dollar of wages to support both PPP forgiveness and the ERC.
StenTam developed proprietary, purpose-built software to solve this optimization problem. Our technology ingests raw payroll data and PPP forgiveness periods to:
- Allocate Wages: Mathematically isolate wages used for PPP to ensure ERC claims are made only on "free and clear" qualified wages.
- Calculated Caps: Enforce the statutory per-employee caps ($5,000 for 2020; $7,000 per quarter for 2021).
- Generate Workpapers: Produce audit-ready data trails that substantiate every dollar claimed.
Theories of Eligibility
Eligibility for the credit generally relied on one of two independent pathways. While no court has issued a definitive, universal ruling on the full scope of the statute, StenTam relies on the plain text of the CARES Act and the thousands of governmental orders issued during the pandemic.
1. Significant Decline in Gross Receipts
This is an objective mathematical test comparing quarterly revenue to the same quarter in 2019.
- 2020: Required a 50% decline in gross receipts compared to 2019.
- 2021: Required only a 20% decline compared to 2019.
2. Full or Partial Suspension of Operations
This pathway applies to businesses whose operations were fully or partially suspended due to orders from an appropriate governmental authority limiting commerce, travel, or group meetings.
Our Position: We believe that tens of thousands of federal, state, and local orders impacted nearly every sector of commerce. "Partial suspension" is not limited to forced closures. Examples of non-controversial partial suspensions include:
- Restaurants: Mandatory reduced indoor dining capacity or table spacing.
- Healthcare: Prohibition on elective procedures or non-emergency visits.
- Legal System: Court closures preventing jury trials and in-person hearings.
- Retail: Strict capacity limits based on square footage.
Filing Mechanics: Form 941-X
The primary vehicle for retroactive ERC claims is Form 941-X (Adjusted Employer's Quarterly Federal Tax Return). This form amends the original Form 941 filed by the employer.
Because the ERC is an employment tax credit, it is subject to specific administrative procedures. StenTam prepares these forms with precision, ensuring that the "non-refundable" and "refundable" portions of the credit are accurately reported to the IRS.
Litigation Strategy & Expert Witnesses
When administrative remedies are exhausted or the IRS fails to follow statutory mandates, refund litigation becomes a necessary tool. StenTam is uniquely positioned to support clients through this adversarial phase.
The Expert Institute Partnership
To substantiate the operational impact of governmental orders, StenTam collaborates with the Expert Institute. This partnership allows us to secure industry-specific experts—from healthcare administrators to supply chain logisticians—who can provide authoritative testimony regarding how specific orders impacted operations in a client's specific sector.
The Burden-Shifting Statute (26 U.S.C. § 7491)
In tax litigation, the burden of proof typically lies with the taxpayer. However, under 26 U.S.C. § 7491, the burden may shift to the government if the taxpayer introduces credible evidence with respect to any factual issue and has maintained all records required by the Internal Revenue Code. Our focus on "audit-ready" documentation from Day 1 is designed to leverage this statutory provision in court.
Non-Retaliation & Good Claims
Tax litigation is adversarial by nature, but it is a statutory right. The Department of Justice (DOJ) and the IRS are prohibited from retaliating against taxpayers for exercising their right to litigate a legitimate claim. A "good claim"—one grounded in facts and law—is always worth defending.
Critical Warning: Statute of Limitations vs. Appeals
Taxpayers currently scheduled for IRS Appeals conferences must be vigilant regarding the Statute of Limitations for filing a refund suit. Generally, a taxpayer has two years from the date of a Notice of Disallowance to file suit in federal court.
Critically, a pending Appeals conference does not toll (pause) this two-year statutory window. If the deadline passes while you are waiting for Appeals, you may permanently lose your right to litigate.
Our Services for Existing Clients
Although we are no longer filing new claims, our work is not finished. We provide full lifecycle support for our clients.
Audit Defense & Examination
If your claim is selected for examination, StenTam provides the substantiation, legal arguments, and data reconciliation needed to defend the credit. We handle Information Document Requests (IDRs) and communicate directly with IRS examiners.
Refund Litigation
When the IRS improperly denies a valid claim or engages in unlawful delays (such as the processing moratorium), StenTam is prepared to litigate. We have filed suit in federal court to protect our clients' statutory rights to these refunds.