IRS Form 7200 allows qualifying tax-exempt organizations to request advance payment of employer credits due to COVID-19 for qualified sick and qualified family leave wages, and the employee retention credit that they claim in their federal tax returns.
The federal Families First Corona Relief Act (FFCRA) allows qualifying tax-exempt organizations to claim refundable tax credits to offset the cost of providing qualified sick and family leave wages to their employees during the period April 1, 2020, through December 31, 2020.
The Coronavirus Aid, Relief and Economic Security Act (CARES Act) permits exempt organizations that are subject to a full or partial closure order due to COVID-19, or that experience a significant decline in gross receipts, to take a tax credit in connection with retaining employees.
By filing Form 7200, qualifying exempt organizations can claim the advance payment on credits that they otherwise claim on the employment tax returns listed below. Any advance credit payments and reduced deposits must be reconciled when the federal tax returns are filed for 2020.
Form 941, Employer's QUARTERLY Federal Tax Return.
Form 941-PR, Planilla para la Declaración Federal TRIMESTRAL del Patrono.
Form 941-SS, Employer's QUARTERLY Federal Tax Return (American Samoa, Guam, the Commonwealth of the Northern Mariana Islands, and the U.S. Virgin Islands).
Form 943, Employer's Annual Federal Tax Return for Agricultural Employees.
Form 943-PR, Planilla para la Declaración Anual de la Contribución Federal del Patrono de Empleados Agrícolas.
Form 944, Employer's ANNUAL Federal Tax Return.
Form 944(SP), Declaración Federal ANUAL de Impuestos del Patrono o Empleador.
Form CT-1, Employer's Annual Railroad Retirement Tax Return.