Updates on early termination of the Employee Retention Credit and more

 

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. Taxpayers that are not recovery startup businesses are not eligible for the Employee Retention Credit for wages paid after Sept. 30, 2021. Visit IRS.gov for more information about the early termination of the Employee Retention Credit for most employers. Also:

• The last day to file Form 7200, Advance Payment of Employer Credits Due to COVID-19, to request an advance payment for the fourth quarter of 2021 is the date on which your client files their employment tax return for the tax period or Jan. 31, 2022, whichever is earlier. The last date to file Form 7200 is the same whether your client files a quarterly Form 941, or an annual Form 943, 944 or CT‐1.
• The Form 7200 fax line will shutdown after Jan. 31, 2022, and the IRS will no longer be accepting Form 7200 submissions. Visit IRS.gov for Form 7200 helpful tips.