Frost Law
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* Note that orders creating qualifying partial suspensions were more common than many employers and tax practitioners realize.
As a result of the pandemic, many nonprofit organizations only survived subject to governmental orders which forced them to temporarily close operations or limit their services. And while there is a widely held belief that tax-exempt organizations are ineligible for any cash relief appearing in the form of a fully refundable tax credit—this is not correct!
Since tax-exempt organizations are deemed to be engaged in a trade or business regarding the entirety of their operations, those businesses that kept employees on payroll during the pandemic still have the opportunity to access significant cash relief in a refundable employee payroll tax credit—the Employee Retention Credit (ERC). Examples of tax-exempt organizations that have already taken advantage of the ERC include, but are not limited to:
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