Question 1

&#x2705; I don't have all the information I need to file. Will my progress be saved so I can finish it later?

Accepted Answer

Yes, your information is saved automatically so you can continue from where you left off. read more

Question 2

&#x2705; What is IRS Form 7200?

Accepted Answer

IRS Form 7200, the Advance Payment of Employer Credits Due to COVID-19, is to be used by employers wanting to request an advance of the refundable tax credit for qualified sick and family leave wages and the refundable employee retention credit that is usually claimed on their federal tax returns. read more

Question 3

&#x2705; How do I know if my business qualifies for the employee retention credit due to COVID-19?

Accepted Answer

COVID-19 has created a huge impact on the US economy. The employee retention credit is given to the qualifying employers in an intention to retain the employees despite the economic hardship they are facing due to the pandemic. read more

Question 4

&#x2705; How is the credit on IRS Form 7200 calculated?

Accepted Answer

The amount of the credit is 50% of the qualifying wages paid up to $10,000 in total and this is effective only for the wages paid between March 13th and December 31, 2020. read more

Question 5

&#x2705; Which are the wages that qualify for employee retention credits on IRS Form 7200?

Accepted Answer

Qualified retention credits are entered on line 1 of Form 7200. Qualified wages are wages paid to certain employees during a quarter for social security and Medicare tax purposes. You have to enter 50% of the amount of the qualified wages that you paid to your employees in the current quarter. read more

Question 6

&#x2705; How do I correct a Form 7200 that I already sent to the IRS?

Accepted Answer

Corrections cannot be made to a previously filed Form 7200. Instead, when the employment tax return(s) are filed for 2020, the employer needs to reconcile any advance credit payments and reduced deposits for 2020. read more

Question 7

&#x2705; Can I request for an advance payment even though my employment tax return information is included on the aggregate employment tax return filed by my CPEO?

Accepted Answer

Yes, if you are a client of Section 3504 Agent or CPEO, you are entitled to request the advance payment of the credits using Form 7200 even though your employment tax return information is included on the aggregate employment tax return which is filed by the Section 3504 Agent or CPEO. read more

Question 8

&#x2705; Will the number of employees affects my credits on IRS Form 7200?

Accepted Answer

Yes. The credits are calculated based on the size of the workforce. Organizations with more than 500 employees cannot claim credit for qualified sick leave wages and family leave wages. read more

Question 9

&#x2705; Can I request advance payment through IRS Form 7200 if the employment tax liability exceeds the credit amount?

Accepted Answer

No. Only if the total credit amount exceeds the employment tax liability, employers will be allowed the full amount of this refundable credit. read more

Question 10

&#x2705; I have an Employee Retention Credit for March 2020, but there is no option to choose Quarter 1 on Form 7200. What do I do?

Accepted Answer

Now, this is one of the questions often asked as to which quarter to choose on the Form 7200 for qualified wages paid anytime between March 13, 2020, and March 31, 2020, as the form does not have the option to select quarter one under the Applicable Calendar Quarter section. read more

Question 11

&#x2705; Should I retain the copies of 7200 filed with the IRS?

Accepted Answer

Yes. You have to keep all records of employment taxes and all filings of advance payments of employer credits for a period of at least 4 years and make them available for IRS review. read more

Form 7200

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E-File Form W-2, 1099-NEC/MISC, 940, 941, 941-X & 2290using ExpressEfile

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E-File Form W-2, 1099-NEC/MISC, 940, 941, 941-X & 2290
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