How do I correct a Form 7200 that I already sent to the IRS?
165 views | Last modified 9/27/2023 6:07:19 AM EST | Added by TaxBandits Team

Corrections cannot be made to a previously filed Form 7200. Instead, when the employment tax return(s) are filed for 2020, the employer needs to reconcile any advance credit payments and reduced deposits for 2020. This will ensure, any corrections to the information filed earlier using Form 7200.

Now, this is possible because the IRS mandates that the employment tax return must be filed after the filing of Form 7200. For instance, say your business files Form 941, the Employer's Quarterly Federal Tax Return quarterly. The due date to file Form 941 for the second quarter is July 31, 2020. For the qualified wages paid anytime April 1, 2020, and June 30, 2020, you have time until July 31, 2020, to file Form 7200.  

Though the due dates for both Form 941 and Form 7200 are July 31, 2020, Form 7200 must be filed before Form 941. You then have to reconcile any advance credit payments and reduced deposits for the second quarter of 2020. 

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.

You can file your business employment tax return or process the advance payment of employer credits, by filing Form 7200.