Every vending machine business is unique and experienced different circumstances during the COVID-19 pandemic, so it is important to consult with an experienced CPA or tax professional about your business’s eligibility. If you own or distribute vending machines, have W-2 employees, and were impacted by a COVID restriction, then you most likely qualify for the ERC program.

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To be eligible for the ERC, your business typically has to fall into at least one of the two following categories:

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

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Examples of government mandates affecting your business may include, but are not limited to:

• Supply chain disruptions
• Sanitation requirements
• Limited access to locations in order to restock machines

With many supermarkets, convenience stores, or other food and beverage retailers experiencing their own restrictions and odd hours, it is possible that your vending machine business had an increase in sales during the COVID-19 pandemic. Despite increased revenue, many of these vending machine businesses still experienced the hardships of the pandemic. Vending machines located in facilities (e.g. hospitals, schools, malls, etc.) that were affected by hourly or capacity restrictions may still be eligible for ERC due to these mandates.

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If your vending machine business saw an increase in sales but was affected by a government mandate, reach out to a qualified CPA to learn more about your ERC eligibility.

Business owners who have already filed for Employee Retention Credit are probably wondering when they can expect to receive the tax credit. With such a large number of businesses being affected by the pandemic, the IRS has a high volume of applications to process. Every case is different and will have a unique 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 vending machine owners and distributors, 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 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.