Frequently asked question #88 “May a payroll reporting agent sign and submit Form 7200 on behalf of a client?” under the Special Issues for Employers: Use of Third Party Payers section of FAQs: Employee Retention Credit under the CARES Act, provided by the IRS.gov to help business owners understand the ERC program. Information is below for the question #88 May a payroll reporting agent sign and submit Form 7200 on behalf of a client?
ERC Credit Frequently Asked Question #88:
COVID-19-Related Employee Retention Credits:
Special Issues for Employers FAQs
88. May a payroll reporting agent sign and submit Form 7200 on behalf of a client?
A payroll reporting agent (RA) may sign Form 7200, Advance Payment of Employer Credits Due to COVID-19, for a client for which it has the authority, via Form 8655, Reporting Agent Authorization, to sign and file the employment tax return (e.g., Form 941, Employer’s Quarterly Federal Tax Return).
The signatory must be the Principal or Responsible Official listed on the RA’s e-file application. The signatory may sign with ink on paper or may use the alternative signature method (rubber stamp, mechanical device, or computer software program; for details and required documentation, see Rev. Proc. 2005-39, 2005-28 I.R.B. 82).
Consistent with Rev. Proc. 2005-39, an alternative signature must be in the form of a facsimile signature. The RA will submit the form via fax to 855-248-0552.
The RA must obtain written authorization from the client (paper, fax, or e-mail) to perform these actions regarding the Form 7200. The RA need not submit that authorization to the IRS, but should retain it in its files so that the RA can furnish it to the IRS upon request.
For a client for which a third party does not have a Reporting Agent Authorization, it may complete and print the form, or it may provide the client a means to complete and print the form, but the client will have to sign it.
The signatory for the RA must sign, date, and print his or her name in the relevant boxes on Form 7200. In the box, “Printed Title,” the signatory must include the RA company name or name of business as it appeared on line 9 of the Form 8655. If the RA company name or name of business from the Form 8655 is missing, the Form 7200 cannot be processed.
For more Internal Revenue Service (IRS) Department of the Treasury Employee Retention Credit (ERC) Special Issues for Employers: Use of Third Party Payers FAQs, visit the official IRS.gov tax website.
Conclusion and Summary on ERC Credit FAQ #88. May a payroll reporting agent sign and submit Form 7200 on behalf of a client?
The “May a payroll reporting agent sign and submit Form 7200 on behalf of a client?” is Frequently Asked Question #88 of many commonly asked questions small business owners are wondering about how to file the Employee Retention Tax Credit (ERTC). The IRS ERC Tax Credit program is a confusing and complex process to determine the correct ERC calculations your business qualifies for. Answers to “May a payroll reporting agent sign and submit Form 7200 on behalf of a client?” and filling out form 941-X may change slightly from frequently updated rules and regulations from the IRS. Leave a comment below if you have further questions on ERC Credit FAQ #88.
Help Completing / Filing / Claiming the Employee Retention Credit (ERC)
Receive Up to a $26,000 ERC Credit from the IRS Per Employee
Disaster Loan Advisors can assist your business with the complex and confusing Employee Retention Credit (ERC), Form 941-X, and the Employee Retention Tax Credit (ERTC) program.
Depending on eligibility, business owners and companies can receive up to $26,000 per employee based on the number of W2 employees you had on the payroll in 2020 and 2021.
The ERC / ERTC Tax Credit Program is a valuable IRS tax credit you can claim. This is money you have already paid to the IRS in payroll taxes for your W2 employees.
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If you are looking for an ERC Company that believes in providing professional ERC Services and value, in exchange for a fair, reasonable, and ethical fee for the amount of work required, Disaster Loan Advisors is a good fit for you.
Schedule Your Free Employee Retention Credit Consultation to see what amount of employee retention tax credit your company qualifies for.
Cover Image Credit: Irs.gov / ERC FAQ / Disaster Loan Advisors.