The Infrastructure Investment and Jobs Act amends section 3134 of the Internal Revenue Code to limit the availability of the Employee Retention Credit in the fourth quarter of 2021 to taxpayers that are recovery startup businesses, as defined in section 3134(c)(5). Therefore, taxpayers that are not recovery startup businesses are not eligible for the Employee Retention Credit for wages paid after September 30, 2021. For more information see: Early Termination of the Employee Retention Credit for Most Employers The last day to file Form 7200 to request an advance payment for the fourth quarter of 2021 is the date on which you file your employment tax return for the tax period or January 31, 2022, whichever is earlier. The last date to file Form 7200 is the same whether you file a quarterly Form 941, or an annual Form 943, 944, or CT‐1. Please note the Form 7200 fax line will be shut down after January 31, 2022 and IRS will no longer be accepting Form 7200 submissions. As a reminder, eligible employers who pay qualified sick and family leave wages and/or provide COBRA premium assistance to help assistance eligible individuals continue their health benefits may still retain an amount of the employment taxes equal to their anticipated credit for qualified sick and family leave wages and/or COBRA premium assistance credit rather than depositing these amounts with the IRS. The employment taxes that are available for the credits include withheld federal income tax, the employee share of Social Security and Medicare taxes, and the employer share of Social Security and Medicare taxes with respect to all employees. Both employer credits and advance payments received must be reported on the applicable employment tax return. This may avoid delays in the receipt of the advance, and please remember that the fastest way to obtain the benefit of the credits is to reduce deposits. Form 7200 helpful tips Fax your completed Form 7200, Advance Payment of Employer Credits Due to COVID-19, to 855-248-0552. Don't include anything other than Form 7200 with your submission. If you include other information, such as tax returns, letters, requests for phone calls, etc., they won't be considered in processing your Form 7200 and they may delay the processing of your form. Don't submit a duplicate Form 7200. If you have requested or received funds previously, report it on the Form 7200. The advance and credits must be reported on the employment tax return and remember to provide a copy of the Form 7200, if using a payroll service provider. January 31, 2022 will be the last day to eFax Form 7200. Taxpayers that are not recovery startup businesses are not eligible for the employee retention credit for wages paid after September 30, 2021. Be mindful of the top three mistakes made on Form 7200, which are: Unauthorized signatures, Return on file, Form 7200 received after the quarter ends.
