Recapturing excess employment tax credits

July 30, 2020

The IRS recently issued temporary and proposed regulations on the recapture of excess employment tax credits under the Families First Coronavirus Response Act (FFCRA) and the Coronavirus Aid, Relief and Economic Security Act.

The regulations cover the reconciling of advance payments of the acts’ refundable employments tax credits and authorize assessments to recapture the credits, when necessary.

Employers can claim the FFCRA credits and the employee retention credit in advance on the new Form 7200.

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