When should I file IRS Form 7200?
204 views | Last modified 11/1/2023 8:57:11 AM EST | Added by TaxBandits Team

Qualifying businesses and tax-exempt organizations can File Form 7200 for an advance payment of the credits anticipated for a quarter at any time before the end of the month following the quarter in which the qualified wages were paid. Businesses are allowed to file Form 7200 multiple times in a quarter. Still, the IRS does not allow the filing of Form 7200 after the federal tax return is filed- quarterly or annually.

For instance, say your business files Form 941, the Employer's Quarterly Federal Tax return every quarter. The due date to file Form 941 for the second quarter is July 31. Now, Form(s) 7200, applicable to the second calendar quarter (April through June), may be filed anytime from April 1 to July 31. Though the due dates are the same, Form(s) 7200 must be filed before Form 941. Doing this allows you to reconcile any advance credit payments and reduced deposits for the first quarter.

One of the questions often asked is which quarter to choose for qualified wages paid anytime between March 13 and March 31, as Form 7200 does not have the option to select quarter one under the Applicable Calendar Quarter section. In such cases, the IRS wants you to choose calendar quarter 2 (April, May, June) on the form.

Likewise, businesses who file the annual federal tax returns Form 943, 944, or CT-1 should not file Form 7200 after the federal tax returns are filed. Also, don't file the form to request an advance payment for any anticipated credit for which you have already reduced your deposits.