Common Form 7200 Errors


The IRS has issued a list of common errors seen in filings that tax preparers should avoid when preparing Form 7200, Advance Payment of Employer Credits Due to COVID-19 

  • Missing or inaccurate Employer Identification Number (EIN). Each EIN on a tax return should be exact.  
  • Check only one box for applicable calendar quarter. Only one box should be checked for the correct quarter.  
  • Check only one box for Part 1, Line A. Likewise, only one box should be checked in Part 1, Line A. 
  • Complete Part 1, Line B. In Part 1, Line B check either “Yes” or “No”. 
  • Complete Part II. Complete all the lines in Part II.   
  • Complete Part II, Lines 1-8. Part II should be completed using dollar amounts, not the number of eligible employees. All lines in Part II should be completed with an actual dollar amount.   
  • Check the math. Check the math on lines 4, 7 and 8.  
  • Sign the form. Failure to sign the form will result in an automatic rejection. 

These errors will slow down the process or will result in an automatic rejection of the filing. The IRS has a comprehensive section of its website dedicated to Coronavirus Tax Relief and Economic Impact Payments. The site provides the latest updates, answers to common questions about the Economic Impact Payments and information for individuals and families, businesses and tax-exempt entities and health plans and retirement plans.   

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Gary DeHart has worked in media for more than 25 years and has been instrumental in developing new revenue streams and business opportunities for the companies he has worked for. Prior to launching Insightful Accountant (formerly Intuitive Accountant), Gary was the Associate Publisher of Accounting Today. Prior to working in media serving the public accounting market, he worked in media for employee benefit managers and brokers, automotive design, textile manufacturing and recreational boating. In addition to being the Publisher and Managing Partner of Insightful Accountant, Gary works with select clients within the accounting market on channel development and growth. He is an Assistant Scoutmaster with the Boy Scouts of America, enjoys fly fishing, time on the beach, cooking on the Big Green Egg and spending time with his family.