Client is a successful restaurant offering indoor and outdoor sit-down and carry-out service. During the pandemic, the city allows the restaurant to remain open provided that all tables in the indoor dining room must be spaced at least six feet apart. The client mistakenly believes that because the restaurant remains open during the pandemic and its gross receipts are more than 50% of its gross receipts before the pandemic, the restaurant is not eligible for the Employee Retention Tax Credit.
Moskowitz LLP analyzes the city’s order and determines that the order restricting the spacing of tables limits the restaurant’s indoor dining service capacity and has more than a nominal effect on its business operations. As a result of the analysis, Moskowitz LLP advises the restaurant that the business operations continue to be partially suspended because the governmental order restricting its indoor dining service has more than a nominal effect on its operations, and the restaurant is therefore eligible for the employee retention tax credit.
As a result of Moskowitz LLP advice, the restaurant files a claim for over $50,000 in employee retention tax credits for three quarters, and the restaurant remains in business and keeps all of its staff.