Show-Me State Times

Missouri Attorney General Andrew Bailey has filed a lawsuit against the Biden Administration’s Internal Revenue Service (IRS) for not providing documents requested under the Freedom of Information Act (FOIA). The inquiry aims to gather information on alleged IRS obstruction in implementing an economic relief measure intended to support small business owners in Missouri.

"I will always fight for small business owners, who are vital to the success of our communities. The Freedom of Information ACT is the conduit between the general public and the federal government that keeps citizens in the know about the powers that be," said Attorney General Bailey. "Joe Biden’s IRS is improperly withholding information. It is illegal, and I will fight until I get answers for Missouri business owners."

The lawsuit seeks to determine if the IRS obstructed a key economic relief measure known as the Employee Retention Credit (ERC). This credit was established by Congress under several legislative acts, including the Coronavirus Aid, Relief, and Economic Security Act (CARES Act), and aimed to refund a portion of federal taxes to businesses retaining employees during emergencies declared in 2020 and 2021. The suspension of this tax credit by the IRS has reportedly caused financial harm to many Missouri businesses.

Federal COVID-19 policies led to severe supply chain disruptions and significant economic losses, forcing some Missouri businesses to close permanently. The ERC provided crucial financial support during these challenging times. Determining whether the IRS hindered this tax relief measure's implementation remains essential for Missourians.

General Bailey initially requested IRS records in May but has yet to receive an adequate response. The lawsuit claims that by asking questions only known internally within the IRS, efforts to fulfill FOIA requests are being stifled.

"If federal agencies are allowed to sidestep requests by the AGO and avoid producing the requested documents, how can a citizen ever hope to cut through the ‘red tape’ and take advantage of rights granted by FOIA? The actions of the IRS are only the tip of the iceberg and are emblematic of a larger pattern and practice of federal agencies using delay and diversion to avoid producing documents requested under FOIA," states part of Bailey's lawsuit.

General Bailey seeks a court declaration that asserts that the IRS failed its legal obligation regarding his FOIA request and an order compelling document disclosure.

The full text of both General Bailey's lawsuit and original FOIA request can be accessed online.