IRS employer tax credits form, employee retention credit guidance posted
The IRS on Tuesday, March 31, issued a new form and instructions for employers to use to obtain advance payments of three tax credits that were created to help businesses cope with the coronavirus pandemic. Employers may file new Form 7200, Advance Payment of Employer Credits Due to COVID-19, to obtain advances of employment taxes that are refundable as a result of the new tax credits: the employee retention credit, the qualified sick leave credit, and the qualified family leave wages credit. The qualified sick leave credit and the qualified family leave wages credit were enacted by the Families First Coronavirus Response Act, P.L. 116-127. The Coronavirus Aid, Relief, and Economic Security (CARES) Act, P.L. 116-136, created the employee retention credit and provided for advance repayment of the first two credits. The IRS also issued guidance on the employee retention credit.
To read the complete post from the April 1, 2020 Journal of Accountancy, please click HERE. If you have questions concerning the form and instructions to obtain advance payments of the three tax credits, please contact a Dugan & Lopatka professional at (630) 665-4440 or firstname.lastname@example.org.