2020-51: Processing delays of advances of employer credits - Spidell

2020-51: Processing delays of advances of employer credits


The IRS is sending letters to taxpayers who are experiencing delays in the IRS’s processing of their Form 7200, Advanced Payment of Employer Credits Due to COVID-19.

Letter 6312 is being sent out to taxpayers who have either had their Form 7200 rejected or changed by the IRS due to computational errors. For computational errors on Form 7200, the IRS will make the change automatically, but the Form 7200 takes longer to process.

Letter 6313 is being sent out to taxpayers who must provide written verification that the mailing address on their Form 7200 is the current mailing address for their business. The IRS will not process a taxpayer’s Form 7200 without this written verification.

Form 7200 was created after the passage of the Families First Coronavirus Response Act (FFCRA) and the CARES Act to allow employers to expedite refunds of the paid sick leave and paid family leave credits available under the FFCRA and the employee retention credit under the CARES Act.

More information about letters 6312 and 6313 can be found at:

www.irs.gov/newsroom/irs-is-sending-letters-to-those-experiencing-a-delay-with-advance-payment-of-employer-credits

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