ADRIAN — The Lenawee Medical Care Facility is suing the federal government, seeking more than $3.5 million in employee retention tax credits it claims were wrongfully denied by the IRS.
Administrator Erin Tuckey says the lawsuit comes after all other options, including appeals, were exhausted.
The credits stem from staffing and service disruptions during the COVID-19 pandemic. The facility argues it qualified under revised IRS guidance, citing mandatory health orders that temporarily shut down parts of the operation.
Tuckey says the dispute centers on how federal agencies interpret those state-level directives.
Operations have not been disrupted, but she says the funds would help recover pandemic-related costs.
Court documents were filed earlier this month in the Eastern District of Michigan.
No response has yet been filed by the IRS.