Many owners of bowling alleys – plus arcades, pool halls, or other “Fun Hall” venues – wonder how their business may be considered eligible for ERC. Typically, your business must have at least one full-time W-2 employee, and fall into at least one of the two following categories:

• Your business experienced decreased revenue from quarters 1-4 in 2020 and 1-3 in 2021, compared to 2019
• Your business was impacted by government-mandated restrictions

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COVID-19 mandates that your business may have experienced include full and/or partial shutdowns, inability to maximally work with your vendors, reduction in services or goods offered to your customers, capacity restrictions, or altered hours resulting from increased sanitation procedures, among others. Consulting with a licensed Certified Public Accountant (CPA) about your business's experiences can help you to understand your eligibility better. 

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If your fun hall received the Paycheck Protection Program (PPP) loans 1 and/or 2, you can still be eligible for ERC, assuming you met the conditions listed above. 

Business owners who have filed for ERC may be wondering when they can expect to receive the tax credit. With so many businesses being affected by the pandemic, the IRS has a high volume of applications to process. Every case is unique and will have a different timeline. Your refund may be processed in about 8 months, although it could take longer. 

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If you wish to check the status of your refund, you may use the “Where’s My Refund?” feature on the IRS website, or you can call the IRS.

For owners of bowling alleys, arcades, and pool halls, ERC can be a great financial relief, but it is important to make sure you and your tax planners are diligent and thorough when examining your eligibility. It is critical to note that the IRS will carefully examine your claim for this credit. Claims that are submitted with falsified information can lead to compliance risks such as ERC audits in the future, setting up a potential disaster.

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Strategic Tax Planning’s experienced tax professionals and CPAs will work closely with you and your business, ensuring all of your ERC qualifications and facts are accurate and in order. We are here to help you receive your deserved relief for persevering during difficult financial times.