ERC Appeals Client File · Test case OBB2 — gov-orders qualification (partial suspension)
Client Profile
EIN: 82-4716923
Entity: Hudson Yards Trattoria LLC
DBA: Hudson Yards Trattoria
Address: 451 W 33rd Street, New York, NY 10001 (Manhattan, Hudson Yards)
Industry: Full-service restaurant (NAICS 722511)
Operating since: September 2018
Operator: Marco Bianchi (member-manager, 60%) + Lucia Bianchi (sister, 40%)
Workforce avg 2019: 22 W-2 employees
Workforce avg 2020: 19 W-2 employees (3 separations during pandemic)
Business Summary
Hudson Yards Trattoria is a 96-seat full-service Italian restaurant in Manhattan's Hudson Yards district. The restaurant opened in late 2018 and operated through 2019 at near-capacity utilization. Like most NYC indoor-dining establishments, operations were heavily constrained throughout 2020 by New York State and City executive orders restricting indoor dining capacity, hours, and at times prohibiting indoor service entirely.
The operator filed original Forms 941-X for the 2020 Q2, Q3, and Q4 quarters and 2021 Q1 in mid-2021 (CPA-prepared). The IRS issued a full disallowance in March 2024 — the agency disputed the qualification on the grounds that the operator's gross-receipts decline did not meet the >50% threshold and asserted insufficient documentation of the governmental-order suspension test.
Qualification Theory (per intake)
Partial Suspension via Governmental Order (eligibility under IRC §3134 / §2301; Notice 2021-20 §III.D).
Note: the gross-receipts test does not qualify this client cleanly — declines were 38.4% Q2, 27.1% Q3, 19.8% Q4 in 2020 (all under the 50% threshold). The qualification rests entirely on the partial-suspension test against New York's executive orders.
2020 Q2 — operations subject to full prohibition on indoor dining under NY EO 202.3 (issued 2020-03-16); restaurant operated takeout/delivery only Apr 1 – Jun 22, 2020. Constitutes more than nominal portion of business (indoor dining was ~78% of revenue per 2019 baseline).
2020 Q3 — limited indoor dining permitted under EO 202.55 (eff 2020-09-30, after Sep 30) at 25% capacity outdoors only; indoor dining still prohibited within NYC through Sep 30. Outdoor capacity constraints continued. Partial suspension confirmed.
2020 Q4 — indoor dining at 25% capacity 2020-09-30 through 2020-12-13 (per EO 202.61/202.81), then prohibited again 2020-12-14 through end of quarter. Partial suspension confirmed.
2021 Q1 — indoor dining prohibited 2020-12-14 through 2021-02-13 (per EO 202.87), then 25% capacity through 2021-02-14, 35% through 2021-03-19, 50% through end of quarter. Partial suspension confirmed for January and early February.
Client retained Hundredfold in April 2026 following the full-disallowance notice. This packet contains all qualifying documentation including the gov-orders citation memo that responds to the IRS's specific document-sufficiency objections. Operator available for live interview per pipeline schedule.
File assembled by intake desk. Pre-call docs sufficient for opening qualification review. Note this is a partial-suspension case — the qualification analysis depends on gov-orders evidence, NOT on revenue-decline thresholds.