Should I retain the copies of 7200 filed with the IRS?
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Last modified 5/27/2020 6:49:28 AM EST
Yes. You have to keep all records of employment taxes and all filings of advance payments of employer credits for a period of at least 4 years and make them available for IRS review. The records should also include supporting documents on how you arrived at the information filled in Form(s) 7200 that you filed with the IRS. The supporting documents include:
- Documents on how the total credit amount for qualified sick and family leave wages were calculated.
- Documents on how the total amount for claiming employee retention credit was calculated.
- Documents on how the amount for qualified health plan expenses that you allocated to wages was calculated.
- Document that explains how you figured out the qualified employees eligible to receive sick and family leave wages, which includes any other additional information set out in Frequently Asked Questions or other guidance on IRS.gov.
- Documents that prove your eligibility for the employee retention credit are based on the suspension of operations or a significant decline in gross receipts.
The IRS also mandates you keep copies of all the completed Form(s) 7200 filed with the IRS for at least 4 years. By filing with TaxBandits, we take care of this for you. Your Form(s) 7200 that you file with us are always available for download anytime.