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Draft IRS form, instructions for claiming advance payment of employer credits (COVID-19)

Draft IRS form, instructions

The IRS has posted draft versions of Form 7200 and the related instructions for claiming the advance payment of employer credits made available in legislative responses to the coronavirus (COVID-19) pandemic.

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The Families First Coronavirus Response Act (Pub. L. No. 116-127)—the so-called “phase 2” coronavirus bill—includes temporary refundable tax credits for certain employers and self-employed individuals for emergency paid leave.

The Coronavirus Aid, Relief, and Economic Security Act (CARES Act) (Pub. L. No. 116-136)—the “phase 3” coronavirus bill—includes a refundable payroll tax credit for 50% of wages paid by certain employers to employees.

The IRS has provided draft versions of Form 7200, Advance Payment of Employer Credits Due to COVID-19, and the draft instructions for Form 7200 for use by employers that file Form(s) 941, 943, 944, or CT-1 to request an advance of the tax credit for qualified sick and family leave wages and the employee retention credit.

The draft versions of Form 7200 and instructions were posted with a “watermark” date of March 30, 2020, and both drafts include a statement that they are not to be relied upon for filing purposes and are subject to change and to OMB approval before being officially released.

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