Speaking with a team of tax professionals and CPAs will help you to understand if your brewery, winery, or distillery may be eligible for the Employee Retention Credit. If your business was affected by a mandated full or partial shutdown, then you most likely qualify for the ERC tax credit. Below you can find a more detailed list of shutdown examples.

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Some business owners of breweries, distilleries, and wineries also wonder about their ERC eligibility if they have already received Paycheck Protection Program (PPP) loans 1 and/or 2. Regardless of whether your business received PPP, you will have the opportunity to apply for ERC. 

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If your brewery, distillery, or winery experienced any of the following disruptions, reach out to Strategic Tax Planning today to learn if you are eligible for the ERC:

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• Drop in gross receipts
• Full and/or partial shutdowns
• Capacity and distancing restrictions
• Restricted access to the workplace
• Inability to work maximally with your vendors
• Reduction in services or goods offered to your customers
• Altered hours resulting from increased sanitation procedures

While most businesses experienced a drop in sales due to COVID-19 restrictions and mandates, there is still potential that takeout orders or other means of business led to increased sales. Breweries, distilleries, and wineries with W-2 employees, who increased sales, may still be eligible for the ERC if the business suffered from any number of government-mandated restrictions. Speaking with a tax professional can help you to understand if your business may fall into this category.

Business owners who have claimed the Employee Retention Credit 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 could be processed in about 8 months, although it may take longer. 

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

Claiming the Employee Retention Credit can be a needed relief for many businesses, 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. Submitting a claim with falsified information can lead to compliance risk such as ERC audits in the future, setting up potential disaster.

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Strategic Tax Planning’s experienced CPAs and tax professionals will work closely with you and your business, ensuring all 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.