COVID Tax Tip 2020-47, April 29, 2020
Employers who are filing Form 7200, Advance Payment of Employer Credits Due to COVID-19 should read the instructions carefully and take their time when completing this form to avoid mistakes.
Using a reputable tax preparer – including certified public accountants, enrolled agents or other knowledgeable tax professionals – can also help avoid errors. Mistakes can result in a processing delay, which means it may take longer to get the advanced payment.
Here are some common errors to avoid when filling out Form 7200:
- Missing or inaccurate Employer Identification Number. Each EIN should be exact. Taxpayers must complete this box.
- Check only one box for the applicable calendar quarter. Only one box should be checked for the correct quarter.
- Check only one box for Part 1, Line A.
- Make sure to complete Part 1, Line B. In Part 1, Line B check either Yes or No.
- Complete Part II, Lines 1-8 using actual dollar amounts. Part II should be completed using dollar amounts, not the number of eligible employees. All lines in Part II should be completed with an actual dollar amount.
- Check the math. Taxpayers should make sure they check the math on lines 4, 7 and 8.
- Sign the form. Taxpayers should remember to sign the form. Failure to sign the form will result in an automatic rejection.
- Form and Instructions for 7200
- Coronavirus tax relief
- Employer credits
- COVID-19-Related Tax Credits for Required Paid Leave Provided by Small and Midsize Businesses FAQs