Nonprofit Resources

print

IRS to Notify Organizations with a Delay with Advance Payment of Employer Credits

print
The IRS has announced that it will send letters to taxpayers experiencing a delay in the processing of Form 7200, Advance Payment of Employer Credits Due to COVID-19. This form is used to claim employer tax credits for paid sick leave and expanded Family Medical Leave Act benefit payments as provided in the Families First Coronavirus Response Act (FFCRA).

If the IRS rejected your organization’s Form 7200 or made a change to the requested amount of advance payment due to a computation error, you will receive Letter 6312 explaining the reason for the rejection or the adjusted payment amount.

If the IRS needs written verification that the address on your Form 7200 is your organization’s current mailing address, you will receive Letter 6313.

With regard to address verification, the IRS noted that:

  • If your Form 7200 shows a different address from the last known address the IRS has in its records, the IRS will send Form 8822-B, Change of Address or Responsible Party – Business, to the last known address. This will ask you to confirm your address and where the advance refund should be mailed to.
  • If you want to officially change your organization’s address to the address listed on your Form 7200, you must complete, sign, date, and return Form 8822-B to the IRS
  • The IRS will not process a Form 7200 or change the last known address in its records until your organization responds to Form 8822-B, if you receive one.

This IRS FAQ provides information about COVID-19-related tax credits for required paid leave.

Please contact us online or email us at info@capincrouse.com with any questions.

Ted Batson

Ted serves as partner, tax counsel, and Professional Practice Leader – Tax. As a certified public accountant and tax counsel, Ted advises exempt organizations of all sizes on a wide range of issues. This includes consulting on tax and employee benefit related matters, representation before state and federal tax authorities, and assistance with firm audit or advisory engagements to formulate advice and counsel on important operating and tax issues. Ted also leads the firm’s tax preparation practice, including IRS Forms 990 and 990-T and related state forms.

Leave a Comment