Letter 6312 is about Form 7200, Advance Payment of Employer Credits Due to COVID-19. Employers used Form 7200 to request an advance of COVID-related employer credits, such as the credit for sick and family leave and the Employee Retention Credit.
The letter means one of two things happened:
- Rejected: The IRS couldn't process your Form 7200 because information was missing or incorrect.
- Adjusted: The IRS corrected a computation error on your Form 7200 and changed the amount of your advance payment.
What to Do
Read the letter carefully. The specific reason for the rejection or adjustment is listed in it. That reason drives your next step.
The letter also explains how you may be able to either submit a new Form 7200 or claim the credit on your applicable employment tax return. Follow those directions and check them against the Form 7200 instructions.
Line Up Your Employment Tax Returns
An advance is not the end of the story. Advance payments are reconciled against the credit on your employment tax return. If your advance was reduced or rejected, make sure your employment tax filings reflect the amount you actually received, not the amount you asked for.
Keep Good Records
Keep the letter, a copy of the Form 7200 you filed, and the payroll records that support the credits. If the IRS reviews the credits later, those records are what you'll need to back them up.
Questions
If something in the letter isn't clear, call the IRS number on your letter. You can also authorize a representative to contact the IRS for you with Form 2848. If you can't resolve a problem through normal channels, the Taxpayer Advocate Service, an independent organization within the IRS, may be able to help.
If your business received Letter 6312 and needs help with COVID-era employer credits, call us at (813) 229-7100.