IRS notification regarding delay in processing advance payment of employer credits

Processing advance payment of employer credits

The IRS today announced that it is sending letters to taxpayers that have experienced a delay in the process of Form 7200, “Advance Payment of Employer Credits Due To COVID-19.”


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Form 7200 is used for claiming the advance payment of employer credits made available in legislative responses to the coronavirus (COVID-19) pandemic.

The IRS release—IR-2020-158 (July 15, 2020)—explains that taxpayers will receive letter 6312 if the IRS either rejected Form 7200 or made a change to the requested amount of advance payment due to a computation error. The letter will explain the reason for the rejection or, if the amount is adjusted, the new payment amount will be listed on the letter.

Also, a taxpayer will receive a letter if the IRS needs written verification from a taxpayer that the address listed on the Form 7200 is the current mailing address for the business. The IRS will not process Form 7200 or change the last known address until the taxpayer provides it.

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