Advance Payments of Employer Credits Due to COVID-19—Form 7200 is the IRS tax form is for employers to request payments of tax credits for qualifying payments made by an employer to be paid in advance.
Form 7200 can be filed if the employer can’t reduce employment tax deposits to fully account for the credits that is anticipated to be claimed on the employer tax returns.
File Form 7200 for requesting advance payment of tax credits for Forms 941, 943, 943, and Form CT-1.
Note: You can’t file Form 7200 for the above employer tax returns for the first quarter. Currently, Form 7200 can be filed to request advance payment of employer credits due to coronavirus pandemic for the second, third, and fourth quarters.
Start filing Form 7200 online below. Click on the boxes you want to check or enter amounts and download it as PDF or print out.
Instructions to File IRS Form 7200
Make sure to select the right quarter. This is not for the current quarter but the quarter you’re going to request the advance payments of credits. With that out of the way, fill out Form 7200 line by line with the following instructions.
Part I – Tell Us About Your Employment Tax Return
Line A – Select the tax form that you’re filing Form 7200 for the advance payments of employer credits due to COVID-19.
Line B – Check yes if you’re a new business started on January 1, 2020 or later.
Line C – Enter the total amount of wage, salary, and other compensation paid to employees reported on the most recent Form 941—Employer’s Quarterly Federal Tax Return.
Line D – Enter the number of employees working for you.
Part II – Enter Your Credits and Advance Requested
Line 1 – Enter the total amount of employee retention credit for the quarter you’re filing IRS Form 7200 for.
Line 2 – Enter the total amount of qualified sick leave wages for the credit. This refers to the amount you’ve paid the employee. So you must enter the amount you’ve already paid.
Line 3 – Enter the total amount of qualified family leave wages eligible for the credit. Again, you need to enter the amount that you’ve already paid for the quarter.
Line 4 – Add all the amounts entered above and enter the results on Line 4.
Line 5 – Enter the total amount you’ve reduced your federal employment tax deposits for the credits for the current quarter.
Line 6 – If you’ve filed this tax form for prior quarters, enter the amount requested for the current quarter.
Line 7 – Add the amounts entered on Lines 5 and 6 and enter the result on Line 7.
Line 8 – Subtract Line 7 from Line 4. If the result is $0 or less, don’t file Form 7002.
Rest of IRS Form 7002
If you want an employee or a paid tax preparer to discuss your 7002 with the IRS, check yes and enter the designee’s name along with the 5-digit IRS PIN. Then, sign and complete the personal information parts.