Hi David,

I agree with you. I didn’t do a good job describing things. I think I’ve fixed the language now.

BTW, I think what makes stuff confusing or complicated are situations that aren’t clear cut.

These situations, e.g., are clear-cut:
1. A retail chain operates five stores and a city order closes two of them.
2. A retaurant provides take-out, an outdoor beer garden, and inside dining and a state order closes the inside dining room.

What I was trying (not initially very successfully) to describe were some rules for the really murky example like the physical therapy office described in the notice. E.g., :
1. Physical therapists close to in-office visits but still do telemedicine after a government order closes the facility.
2. A professional (lawyer, tax accountant, etc) provides legally mandated essential services and other nonessential services out of a small office but then a government order closes the offices for non-essential activities.

Obviously, I’m thinking (proposing) that we can have partially suspended operations even in murky situations. So, not just like the physical therapists’ offices. But maybe the lawyer or accountant.

BTW, thank you much for your useful comments. You made me go back and reread and then reframe my post. I didn’t do a good job first time. 🙁

Steve

I am going to very respectfully disagree with your interpretation of partial shutdown. If you look at Notice 2021-20, question 17, examples 1 & 2 (referring specifically to the restaurant industry), it appears to say very clearly that if more than a nominal portion of the company’s business is fully or partially suspended due to government orders it is considered to be a partial suspension. The nominal portion of the business, as I read it, refers to the portion of the business operations in the comparable calendar quarter of 2019 and not to any reduction in gross receipts between the quarters. The example is very on point and seems clear although not much in tax law or interpretation is perfectly clear.

It seems to me that you are saying that there needs to be a 10% reduction in gross receipts between comparable quarters and that is where I disagree based on the IRS answer and examples. In my view, if your sit down business was 80% (or more than 10%) of your revenue in the comparable 2019 quarter and that portion of the business (more than nominal) was fully or partially shut down due to government orders, the business qualifies for the ERC even if their total revenue versus the comparable quarter in 2019 was not down the requisite amount.