How we got a pharmacy a $500,000 in tax credits

01. Brief

INDUSTRY

Pharmacy
LOCATION
Los Angeles, CA

Fadi, an owner of a pharmacy, was recently referred to us to evaluate whether or not he qualified for the employee retention tax credits.

As the owner of a pharmacy, his business is essential.

And in today’s covid world, more critical than ever.

But he thought he might qualify. But wasn’t sure how.

And definitely didn’t want to do it alone.

02. What did we do?
As always, we followed our three step process.
01 We gathered all his documents.
02 Then, we analyzed his situation and completed our calculations.
03 Then, after reviewing with him, we filed his returns.

Fadi’s situation was unique, though.

Fadi didn’t have a revenue reduction, AND his business was clearly essential.

But in the information gathering phase, Fadi explained all the extra regulations he was forced to comply with to stay open.

There were new covid regulations from the State and County he operated in.

The state’s department of health imposed special cleaning and sanitization requirements on pharmacies due to the high likelihood that covid could be spread in such locations.

While his doors could remain open, he had to severely limit the number of patients allowed inside his facility at any given time to minimize the potential spread of the virus.

And he was required to implement curbside pickup and drop off whenever possible. Which meant he had to have a full time staff member just to run prescriptions back and forth to customers.

When we added up all the time he spent managing the new guidelines it was clear – his business was more than nominally impacted.

In fact, even though he could stay open, nearly everything about the way he conducted business, and the way he interacted with his customers had to change in order to comply with the state mandates.

03. The Result

After a grueling year of constantly changing regulations Fadi and his team were worn out. Just documenting all the changes he was forced to comply with was a tiring task.

We recently wrapped up filing for his tax refunds. He is waiting for nearly $500,000 in refunds from the government.

This money will be used to offset his investments in new processes, safety protocols, and additional safety equipment. And he hopes to hire additional staff so he can better and safely serve his high-risk customers in the covid world.