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IRS Releases Draft of Schedule R of Annual Return for Agricultural Employees

Thomson Reuters Tax & Accounting  

Thomson Reuters Tax & Accounting  

The IRS has released the 2022 draft of Schedule R for Form 943 (Employer’s Annual Federal Tax Return for Agricultural Employees).

Schedule R of Form 943.

Employers use Schedule R to allocate the aggregate information reported on Form 943 (Employer’s Annual Federal Tax Return for Agricultural Employees) to each client. Agents approved by the IRS under Code Sec. 3504 and CPEOs must complete Schedule R each time they file an aggregate Form 943. To request approval to act as an agent for an employer under Code Sec. 3504, the agent must file Form 2678 (Employer/Payer Appointment of Agent) with the IRS. Form 2678 must be previously filed and approved by the IRS before filing Schedule R.

Other third-party payers that file aggregate Forms 943, such as non-certified PEOs, must complete and file Schedule R if they have clients that are claiming the qualified small business payroll tax credit for increasing research activities, the credit for qualified sick and family leave wages, or the COBRA premium assistance credit.

Third-party payers other than agents approved by the IRS under Code Sec. 3504 and CPEOs need to include client-by-client amounts only for those clients claiming one or more these credits. Amounts for clients not claiming any of these credits are included on Schedule R, page 1, line 8.

What’s new.

The 2022 draft Schedule R (Form 943) now designates lines l, r, t, x, and y as “Reserved for future use.” These lines were formerly used to report amounts from Form 943 related to the employee retention credit and advance credits received from filing Form 7200 (see Payroll Guide ¶20,907). The 2022 draft instructions for Schedule R (Form 943) have not yet been released.

Form 943.

The draft 2022 version of Form 943 was released on June 28, 2022. A draft version of the instructions for 2022 have not yet been released.


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