Art Galleries

The COVID-19 pandemic has posed unprecedented challenges for the art industry, disrupting exhibitions and sales. The measures put in place to reduce the spread of the virus, such as lockdowns and social distancing have had a significant impact on artists, galleries, museums, and other art businesses. 

However, the Employee Retention Credit (ERC) serves as a valuable lifeline to businesses that retained their employees during 2020 and 2021. With this tax credit, this initiative aims to alleviate the financial burden. The ERC could provide up to $26,000 per employee to eligible art galleries and other art businesses that satisfy specific criteria established by the government.

At Strategic Tax Planning, our team of Certified Public Accountants (CPA) is well-versed in the ever-changing regulations surrounding the ERC. We help businesses understand their eligibility for the ERC and maximize the credit available to them. We can guide you through the process, ensuring you meet all the requirements and claim the credit correctly. Call us for a free eligibility analysis at (202) 455-6010 or submit your information in our contact form, and we will reach out to you.

Does Your Art Gallery Qualify for ERC?

There are various factors beyond financial hardship that could allow your art gallery to qualify for the ERC. Seeking guidance from tax professionals and CPAs will help you gain a comprehensive understanding of the requirements surrounding your eligibility for claiming the credit.

If your art gallery experienced any of the following, you may be eligible for ERC:

• Full or partial shutdown
• Reduced occupancy
• Spacing Limitations
• Reduction in hours to comply with hygiene/sanitation requirements

Your art gallery, museum, or other art-related business may have already received other aid in the past, such as Paycheck Protection Program (PPP) loans, but this does not disqualify you from obtaining relief from ERC. Your business can still claim this uncapped tax credit if you qualify.

What If Your Art Gallery Had Increased Revenue in 2020 and 2021?

The eligibility is not solely determined by revenue figures but also considers the effects of governmental directives on the business. If your art gallery can provide evidence that it faced restrictions or limitations due to government-imposed orders, it may still qualify for ERC.

The ERC aims to support businesses and organizations affected by the pandemic, even if their revenues increased between 2020 and 2021. By highlighting the adverse impact of government orders on their operations, your art gallery can potentially access this valuable financial relief. Speak with a Certified Public Accountant to help you understand if this kind of qualification applies to you.

How Long is the ERC Refund Processing Timeline?

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. 

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. 

Discover a CPA Firm You Can Trust

Art galleries can find relief by claiming the Employee Retention Credit, which offers a tax credit to assist in covering pandemic-related wage expenses. However, it is crucial to emphasize that careful attention must be given to eligibility requirements and accurate reporting when claiming this credit. The IRS closely examines claims for legitimacy, and submitting an inaccurate claim can result in audits and other complications.

To ensure that your art gallery avoids these issues and receives the deserved relief, seeking professional assistance is essential. At Strategic Tax Planning, our team of experienced CPAs works closely with you to ensure compliance with all qualifications and accurate representation of facts. This guidance can help you navigate the intricate ERC rules and prevent costly errors. 

If you own an art gallery and are uncertain about your eligibility for the Employee Retention Credit, reach out to Strategic Tax Planning for a free assessment. You can call us today at (202) 455-6010 or submit your information in this contact form, and we will call you.