Recent IRS guidance clarifies whether businesses affected by supply chain disruptions during the COVID-19 pandemic are entitled to claim an Employee Retention Tax Credit (ERTC). It reviews five illustrative scenarios in which business activities, including commerce, travel and group meetings, were suspended due to government orders. Details of the five scenarios can be found here: https://bit.ly/3OC3CaX. The bottom line is that a government order must have been responsible for supply chain disruptions and the disruptions must have resulted in a full or partial suspension of an employer’s business for it to meet ERTC eligibility criteria. (Advice Memorandum 2023-005)
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