For this to apply, you must meet 3 tests: 1. The orders have to come from the federal government, or a state or local government that has jurisdiction over the business. 2. The orders have to limit commerce, travel, or group meetings due to COVID-19; and 3. The orders must affect an employer’s operation of its trade or business. See this article for a further discussion of shutdown eligibility.
Gross receipts are your total sales less returns and allowances. It also includes interest, dividends, rents, royalties and gains on sales of assets. It should NOT be reduced by cost of goods sold. We are awaiting rules to determine what method of accounting should be used, cash, accrual or otherwise. For now, simply use the method of accounting that is used on your tax reporting. For most taxpayers that is "Cash Basis".
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