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Navigating the Notices: Substantiation Requirements
Navigating the Notices: Substantiation Requirements

Substantiation Requirements

Updated over a week ago

Substantiation Requirements

Keywords

  • Substantiate

  • Audit


  • N. Substantiation Requirements

    • Q&A 70

      • "Q. What records should an eligible employer maintain to substantiate eligibility for the employee retention credit?"

      • "A. An eligible employer will adequately substantiate eligibility for the employee retention credit if the employer creates and maintains records that include the following information:

        • Documentation to show how the employer determined it was an eligible employer that paid qualified wages, including:

          • any governmental order to suspend the employer’s business operations;

          • any records the employer relied upon to determine whether more than a nominal portion of its operations were suspended due to a governmental order or whether a governmental order had more than a nominal effect on its business operations;

          • any records the employer used to determine it had experienced a significant decline in gross receipts;

          • any records of which employees received qualified wages and in what amounts; and

          • in the case of a large eligible employer, work records and documentation showing that wages were paid for time an employee was not providing services.

        • Documentation to show how the employer determined the amount of allocable qualified health plan expenses.

        • Documentation related to the determination of whether the employer is a member of an aggregated group treated as a single employer for purposes of the employee retention credit and, if so, how the aggregation affects the determination and allocation of the credit.

        • Copies of any completed Forms 7200 that the employer submitted to the IRS.

        • Copies of the completed federal employment tax returns that the employer submitted to the IRS (or, for employers that use third-party payers to meet their employment tax obligations, records of information provided to the third party payer regarding the employer’s entitlement to the credit claimed on the federal employment tax return).

      • Q&A 71

        • "Q. How long should an eligible employer maintain records to substantiate eligibility for the employee retention credit?"

        • "A. An eligible employer should keep all records of employment taxes for at least 4 years after the date the tax becomes due or is paid, whichever comes later. These should be available for IRS review.

  • The word, "audit" appears 0 times.

  • The word, "substantiate" appears 0 times.

  • The word, "audit" appears 0 times.

  • The word, "substantiate" appears 7 times but not in the context of an employer's substantiation requirements with the IRS.

  • The word, "audit" appears 0 times.

  • The word, "substantiate" appears 0 times.

  • The word, "audit" appears 0 times.

  • The word, "substantiate" appears 0 times.

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