Because of the havoc COVID-19 is creating for the US economy (and the rest of the world), the federal government has taken a number of steps to help curb its economic impact in 2020.
This began with a number of registration exemptions and HOS exemptions for truckers and pushing the 2020 IRS tax deadline back to July 15th.
Then, on March 31, the CARES Act was passed. This extended a number of relief programs to small businesses with over $2 trillion in stimulus money.
One of the latest and most practical parts of the CARES Act is the new IRS Form 7200. Here’s what you need to know about the IRS Form 7200.
What is the IRS Form 7200 for?
The IRS Form 7200 (officially called Advance Payment of Employer Credits Due to COVID-19) allows employers to request an advance on their tax credits relating to the COVID-19 crisis.
Form 7200 was specifically created for tax credits for employee sick leave, family leave, and payroll retention related to the economic impact of the Coronavirus.
Employers can get up to a 50% tax refund on wages paid up to $10,000 if they maintain payroll.
Who is the IRS Form 7200 for?
The IRS Form 7200 is for employers who filed employment tax returns such as 941, 943, 944, and/or CT-1.
How to file the IRS Form 7200
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