Arcades, bowling alleys, pool halls, or other "Fun Halls" impacted by the COVID-19 pandemic are likely eligible to receive the ERC.
During the COVID-19 pandemic, entertainment venues – or “Fun Halls” – such as bowling alleys, arcades, and pool halls went through stressful times. With government mandates of hourly or capacity limits, and some even experiencing full shutdowns, many of these beloved businesses struggled to stay afloat.
Fortunately, for owners of bowling alleys, arcades, or pool halls, you may be eligible for the Employee Retention Credit (ERC), part of the 2020 CARES Act. ERC can provide up to $26,000 per W-2 employee for already paid wages.
If you own a “Fun Hall” and wonder if you may be eligible for ERC, reach out to Strategic Tax Planning. You can call us today at (202) 455-6010 or fill out this contact form, and we will reach out to you.
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:
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.
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.
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.
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.
If you are the owner of a bowling alley, arcade, or pool hall and wonder if you may be eligible for ERC, reach out to Strategic Tax Planning for a free consultation. You can call us today at (202) 455-6010 or submit your information in our contact form, and we will call you.