San Francisco Tax Preparation / CPA: Taxpayers Getting Letters on Employer Credit Advance Payment Processing Delays

Filed in CCH NEWS FEED by on August 11, 2020

The IRS has started sending letters to taxpayers who have experienced delays in the processing of their Form 7200, Advance Payment of Employer Credits Due To COVID-19.

If the IRS rejected Form 7200 or made a change to the requested amount of advance payment due to a computation error, the taxpayer can expect to receive Letter 6312 , which will explain the reason for the rejection or list the new payment amount if the amount was adjusted.

However, written verification may be required by the taxpayer that the address list on their Form 7200 is the current mailing address for their business. In this case, taxpayers can expect to receive Letter 6313. The IRS will not process Form 7200 or change the last known address until the taxpayer provides it.

More information on employer credits can be found at https://www.irs.gov/coronavirus/coronavirus-tax-relief-for-businesses-and-tax-exempt-entities.

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