Employers who are filing Form 7200, Advance Payment of Employer Credits Due to COVID-19 should read the instructions carefully and take their time when completing this form to avoid mistakes.
Here are some common errors to avoid when filling out Form 7200:
- Missing or inaccurate Employer Identification Number.
Each EIN should be exact. Taxpayers must complete this box.
- Check only one box for the applicable calendar quarter.
Only one box should be checked for the correct quarter.
- Check only one box for Part 1, Line A.
- Make sure to complete Part 1, Line B.
In Part 1, Line B check either Yes or No.
- Complete Part II, Lines 1-8 using actual dollar amounts.
Part II should be completed using dollar amounts, not the number of eligible employees. All lines in Part II should be completed with an actual dollar amount.
- Check the math.
Taxpayers should make sure they check the math on lines 4, 7 and 8.
- Sign the form. Taxpayers should remember to sign the form. Failure to sign the form will result in an automatic rejection.
If you are a customer of Corporate Payroll Services, Form 7200 will be automatically generated for you and transmitted to the IRS on your behalf if a refund is owed to you. Having the form automatically generated by us helps reduce errors and allows you to receive your refund in a timely manner.
If you are not a Corporate Payroll Services Client, we’d love to have you on board. Contact us today to learn more.