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Form 7200 is a prepayment

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    Form 7200 is a prepayment

    I hope I have this correct - please advise if not so.

    From what I can see, Form 7200 is an advance payment for a credit which is not realized until Form 941 is filed and reconciled. If a taxpayer wants to pay his accountant (or people like us) the time necessary to calculate up to 3 months in advance the amount of the credit and get money back from the IRS for various employer credits, it can be done. But all the payments resulting from 7200 must be paid back when calculating the 941 at the end of the quarter. Correct?

    By the way, the latest in a series of payroll tax giveaways is a proposal that Biden is taking credit for. Pay the employer back for the hour or so paid leave that an employee takes off work to get the vaccine. Boy, that one hour really justifies the accounting time to calculate the credit for that one, right? Oh, but that doesn't include the two days after the vaccine that the employee can fake claiming they are sick with the symptoms. It seems like politicians are rushing to the hog trough to take credit for the latest government giveaway. When will it stop? Or will it ever?
    Last edited by Snaggletooth; 04-24-2021, 11:33 PM.

    #2
    Several people have read, but no response. Probably because I asked to advise if my assumption was incorrect. I believe my assumption is correct, or there would have been responses.

    Thanks, Snag

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