Form 5884-D
Forms

Form 5884-D: Employee Retention Credit for Certain Tax-Exempt Organizations Affected by Qualified Disasters

Qualified tax-exempt organizations can use Form 5884-D to claim the 2020 qualified disaster employee retention credit against certain payroll taxes. This credit is equal to 40% of up to $6,000 of qualified wages paid to or incurred for each eligible employee and is claimed against the employer portion of social security tax.

What is Form 5884-D?

Form 5884-D is used by a qualified tax-exempt organization to claim the 2020 qualified disaster employee retention credit against certain payroll taxes. Qualified wages up to a total of $6,000 are eligible for the credit, which can be used to reduce required deposits, and is equal to 40% of the wages paid to or incurred for each eligible employee. It is to be filed separately from any other returns, and must be filed within 2 years of the date the tax reported on the employment tax return was paid, or 3 years from the date the employment tax return was filed.

IRS Form 5884-D – Who Needs to Fill It Out?

IRS FORMS 5884-D must be filled out by qualified tax-exempt organizations who continued to pay or incur wages after activities of the organization became inoperable due to qualified disaster damage. This form can be used to claim a 2020qualified disaster employee retention credit against certain payroll taxes. Eligible employees must have had their principal place of employment in the disaster zone and qualified wages have been paid or incurred between the beginning of the Disaster incident period and December 27, 2020. A single Form 5884-D should be filed for each organization, for each employment tax period in which qualified wages are paid. It is important to note that the form cannot be processed until the corresponding employment tax return is processed, so the organization may receive a system-generated notice reflecting a balance due and penalties and interest. This balance will be abated when the credit is applied.

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Step-by-Step: Form 5884-D Instructions For Filling Out the Document

Form 5884-D is used by qualified tax-exempt organizations to claim the 2020 qualified disaster employee retention credit against certain payroll taxes. The credit is equal to 40% of up to $6,000 of qualified wages paid to or incurred for each eligible employee, and is claimed against the employer portion of social security tax on wages paid to all employee during an employment tax period. To claim the credit, the organization files Form 5884-D after filing its employment tax return for the employment tax period in which it is claiming the credit. The organization will file one Form 5884-D per employment tax period, and it must be filed within two years after the date of the tax reported on the employment tax return or three years after the date the employment tax return was filed, whichever is later. Finally, Form 5884-D should be sent to the address provided at the bottom of the form.

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Below, we present a table that will help you understand how to fill out Form 5884-D.

Information Required for Form 5884-D Details
Purpose Claiming the 2020 qualified disaster employee retention credit against certain payroll taxes
Credit Percentage 40%
Maximum Qualified Wages Up to $6,000 per eligible employee
Credit Application Claimed against the employer portion of social security tax on wages paid to all employees during an employment tax period
Filing Deadline Within two years after the date of the tax reported on the employment tax return or three years after the date the employment tax return was filed, whichever is later
Filing Procedure File one Form 5884-D per employment tax period after filing the employment tax return for that period
Mailing Address Send to the address provided at the bottom of the form
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Do You Need to File Form 5884-D Each Year?

Yes, qualified tax-exempt organizations eligible to claim the 2020 qualified disaster employee retention credit must file Form 5884-D after it files its employment tax return for the employment tax period for which it is claiming the credit. The organization begins by filing Form 5884-D for the first employment tax period in which qualified wages were paid and continues to file Form 5884-D each subsequent employment tax period for which the cumulative credit amount changes. Such Form should be filed separately from any other returns, within 2 years from the date the tax reported on the employment tax return was paid, or 3 years from the date the employment tax return was filed, whichever is later. The IRS will refund the amount shown on line 12 of Form 5884-D, plus any interest that applies.

Download the official IRS Form 5884-D PDF

On the official IRS website, you will find a link to download Form 5884-D. However, to make it easier for you, we are providing the link in our article, which comes directly from the official irs.gov website! Click to download: Form 5884-D

Sources:

https://www.irs.gov/forms-pubs/about-form-5884-d

https://www.irs.gov/instructions/i5884d

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