If your brewery was affected by a mandated full or partial suspension of operations then you most likely qualify for the ERC.
Breweries, distilleries, and wineries have all become popular destinations for beverage connoisseurs, but unfortunately, the brewing industry was one of the many industries negatively affected by the COVID-19 pandemic. Government mandates of capacity and distance restrictions, along with partial or full shutdowns, made it difficult to keep these businesses afloat in 2020 and 2021. Fortunately, you may be eligible for the Employee Retention Credit (ERC), part of the 2020 CARES Act, which can provide up to $26,000 per employee for already paid wages.
If you believe your business may be eligible for the ERC or would like to speak with an experienced Certified Public Accountant (CPA) to learn more about your business’s eligibility, reach out to Strategic Tax Planning. 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.
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.
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.
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.
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.
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.
If you own a brewery, distillery, or winery and wonder if you may be eligible for the 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 this contact form, and we will call you.
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