When should I file IRS Form 7200?
4.5k views | Last modified 5/27/2020 7:06:42 AM EST

Applicable To
94X 1099 W-2 ACA W-4

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, 2020. Now, the Form(s) 7200 applicable to the second calendar quarter (April through June) may be filed anytime from April 1, 2020, through July 31, 2020. Though the due dates are the same, the 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 of 2020.

One of the questions often asked is on which quarter to choose for qualified wages paid anytime between March 13, 2020, and March 31, 2020, as the 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 for businesses who file the annual federal tax returns Form 943, 944, or CT-1 for 2020, 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 already reduced your deposits.

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