26 May IRS Updates Form 7200: Advance Payment of Employer Credits Due to COVID-19
The IRS released an updated Form 7200, Advance Payment of Employer Credits Due to COVID-19, on May 18, 2021. The form was developed so employers could get new tax credit refunds paid in advance.
IRS Note: At the time Form 7200 and these instructions went to print, the credit for qualified sick and family leave wages is available for leave taken before October 1, 2021, and the employee retention credit is available for wages paid before January 1, 2022.
COBRA premium assistance is only available for periods of coverage beginning on or after April 1, 2021, through periods of coverage beginning on or before September 30, 2021. However, the COBRA premium assistance credit could be claimed on employment tax returns for the second, third, or fourth quarter of 2021, depending on when the employer (or other person) becomes entitled to the credit.
If any of these credits are extended, and advance payments are allowed for future quarters, an update will be posted under Recent Developments at IRS.gov/Form7200. (Form 7200, Advance Payment of Employer Credits Due to COVID-19, and Instructions, May 18, 2021).
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