IRS Provides Guidance for Employers to Obtain Advance Payment of Coronavirus Refundable Tax Credits
On March 30, 2020, the Internal Revenue Service (IRS) provided guidance for employers to obtain an advance payment of tax credits due to the coronavirus.
Under tax legislation enacted in response to the coronavirus, employers may be eligible for the following types of refundable payroll tax credits:
- The Families First Coronavirus Response Act requires certain employers to provide paid sick time and paid family leave, and provides employers with refundable payroll tax credits to cover the costs of such wages.
- The Coronavirus Aid, Relief and Economic Security Act provides a refundable tax credit to employers that retain employees despite economic hardships related to the coronavirus.
The IRS has released Form 7200 to be used by employers to request an advance payment of both of these refundable payroll tax credits. Form 7200 and its instructions can be found here.
Please contact Douglas Turner Coats with any questions or concerns.
Douglas Turner Coats
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April 02, 2020