Your "gross receipts" depend on what type of business you have. Find your business type below, then scroll down to find the appropriate "gross receipts" guidance for your business type:
If you are able to reference a 2020 quarter and a 2019 quarter for your revenue reduction:
- Refer to "For-profit business" below
- Refer to "For a nonprofit 501(c)(3) organization, a 501(c)(19) veterans organization, an eligible nonprofit news organization, an eligible 501(c)(6) organization, or an eligible destination marketing organization" below
If you will be referencing annual numbers for your revenue reduction:
- Refer to "If you use your entity’s annual income tax returns to demonstrate a gross receipts reduction" below
For a for-profit business, gross receipts generally are all revenue in whatever form received or accrued (in accordance with the entity’s accounting method, i.e., accrual or cash) from whatever source, including from the sales of products or services, interest, dividends, rents, royalties, fees, or commissions, reduced by returns and allowances but excluding net capital gains and losses. These terms carry the definitions used and reported on IRS tax return forms.
Gross receipts do not include the following:
- taxes collected for and remitted to a taxing authority if included in gross or total income, such as sales or other taxes collected from customers (this does not include taxes levied on the concern or its employees);
- proceeds from transactions between a concern and its domestic or foreign affiliates; and amounts collected for another by a travel agent, real estate agent, advertising agent, conference management service provider, freight forwarder or customs broker.
All other items, such as subcontractor costs, reimbursements for purchases a contractor
makes at a customer’s request, investment income, and employee-based costs such as
payroll taxes, may not be excluded from gross receipts.
For a nonprofit 501(c)(3) organization, a 501(c)(19) veterans organization, an eligible
nonprofit news organization, an eligible 501(c)(6) organization, or an eligible
destination marketing organization, gross receipts means gross receipts within the meaning of section 6033 of the Internal Revenue Code of 1986, which is the gross amount received by the organization during its annual accounting period from all sources without reduction for any costs or expenses including, for example, cost of goods or assets sold, cost of operations, or expenses of earning, raising, or collecting such amounts. Thus “gross receipts” includes, but is not limited to:
(i) the gross amount received as contributions, gifts, grants, and similar amounts without reduction for the expenses of raising and collecting such amounts,
(ii) the gross amount received as dues or assessments from members or affiliated organizations without reduction for expenses attributable to the receipt of such amounts,
(iii) gross sales or receipts from business activities (including business activities unrelated to the purpose for which the organization qualifies for exemption, the net income or loss from which may be required to be reported on Form 990-T),
(iv) the gross amount received from the sale of assets without reduction for cost or other basis and expenses of sale, and
(v) the gross amount received as investment income, such as interest, dividends, rents, and royalties.
Gross receipts of a borrower’s affiliates (unless a waiver of affiliation applies) are calculated by adding the gross receipts of the business concern with the gross receipts of each affiliate.
If I use my entity’s annual income tax returns to demonstrate a gross receipts reduction of at least 25 percent, what amounts do I use to calculate gross receipts?
The amounts required to compute gross receipts varies by the entity tax return
- For self-employed individuals other than farmers and ranchers (IRS Form 1040
Schedule C): sum of line 4 and line 75
- For self-employed farmers and ranchers (IRS Form 1040 Schedule F): sum of
lines 1b and 9
- For partnerships (IRS Form 1065): sum of lines 2 and 8, minus line 6
- For S-Corporations (IRS Form 1120-S): sum of lines 2 and 6, minus line 4
- For C-Corporations (IRS Form 1120): sum of lines 2 and 11, minus the sum of
lines 8 and 9
- For nonprofit organizations (IRS Form 990): the sum of lines 6b(i), 6b(ii), 7b(i),
7b(ii), 8b, 9b, 10b, and 12 (column (A)) of Part VIII
- For nonprofit organizations (IRS Form 990-EZ): sum of lines 5b, 6c, 7b, and 9 of
- LLCs should follow the instructions that apply to their tax filing status in the