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Form 5884-D Instructions

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

Rev. April 2021

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  • Form 5884-D - Employee Retention Credit for Certain Tax-Exempt Organizations Affected by Qualified Disasters
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Department of the Treasury  
Internal Revenue Service  
Instructions for Form 5884-D  
(April 2021)  
Employee Retention Credit for Certain Tax-Exempt Organizations Affected by  
Qualified Disasters  
Section references are to the Internal Revenue Code  
unless otherwise noted.  
A qualified tax-exempt organization filing its own Form  
5884-D should file one Form 5884-D for the organization  
per employment tax period. A third-party payer will file a  
single separate Form 5884-D for each qualified  
Future Developments  
tax-exempt organization per employment tax period.  
For the latest information about developments related to  
Form 5884-D and its instructions, such as legislation  
enacted after they were published, go to IRS.gov/  
Form 5884-D is filed separately from any other returns.  
The credit claimed on Form 5884-D will not affect the tax  
liability reported on the organization’s employment tax  
returns. Nevertheless, the organization may reduce its  
required deposits for an employment tax period by the  
amount of its anticipated credit for that employment tax  
period. The IRS will refund the amount shown on line 12  
of Form 5884-D, plus any interest that applies, unless the  
IRS corrects Form 5884-D during processing or the  
organization owes other taxes, penalties, or interest.  
General Instructions  
Purpose of Form  
A qualified tax-exempt organization (including certain  
governmental entities) that continued to pay or incur  
wages after activities of the organization (treated as an  
active trade or business for this purpose) became  
inoperable because of damage from a qualified disaster  
may be able to use Form 5884-D to claim the 2020  
qualified disaster employee retention credit against  
certain payroll taxes. This is similar to the credit  
businesses claim against income taxes using Form  
5884-A. The credit is equal to 40% of up to $6,000 of  
qualified wages paid to or incurred for each eligible  
employee. The credit is claimed against the employer  
portion of social security tax on wages paid to all  
employees during an employment tax period. A list of  
qualified disasters is available at the end of these  
instructions.  
The amount properly claimed on Form 5884-D is  
treated as a credit on the first day of the  
TIP  
organization’s employment tax period. Qualified  
tax-exempt organizations eligible to claim this credit can  
reduce their deposits for an employment tax period by the  
amount of their anticipated credit for that employment tax  
period. However, because Form 5884-D may not be  
processed with the organization’s employment tax return,  
an organization that reduces its required deposits in  
anticipation of a Form 5884-D credit may receive a  
system-generated notice reflecting a balance due and  
associated penalties and interest, if applicable. The  
balance due, including any related penalties and interest,  
resulting from the reduction in deposits to reflect the Form  
5884-D credit will be abated when the credit is applied.  
Such abatement should occur without any action from the  
organization.  
The organization files 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 to an eligible employee.  
The organization continues to file Form 5884-D for each  
subsequent employment tax period in or for which it paid  
additional amounts that affect the cumulative credit. For  
each subsequent employment tax period, the organization  
figures the cumulative credit for that employment tax  
period and all previous employment tax periods beginning  
with the first employment tax period in which qualified  
wages were paid. That amount is adjusted for any credit  
amounts claimed on previously filed Forms 5884-D. The  
organization continues to file Form 5884-D for each  
subsequent employment tax period for which the  
cumulative credit amount changes. The cumulative credit  
amount may change if:  
Qualified Tax-Exempt Organization  
A qualified tax-exempt organization is an organization  
described in section 501(c) and exempt from tax under  
section 501(a) if:  
It conducted activities in a 2020 qualified disaster zone  
at any time during the incident period of the qualified  
disaster, and  
These activities (treated as an active trade or business  
for this purpose) were inoperable as a result of damage  
sustained by reason of that qualified disaster at any time  
during the period beginning on the first day of the incident  
period of the qualified disaster and ending on December  
27, 2020.  
Additional qualified wages were paid in the subsequent  
An agency or instrumentality of the federal government,  
or of a state, local, or Indian tribal government, is not a  
qualified tax-exempt organization unless it is:  
employment tax period,  
Additional employment taxes were paid for the  
subsequent employment tax period that allow the  
organization to claim an additional credit amount for  
unused qualified wages paid in an earlier employment tax  
period, or  
A federally chartered corporation described in section  
501(c)(1) and exempt from tax under section 501(a);  
A federal, state, or local college or university; or  
An entity whose principal purpose or function is  
Both of the above apply.  
providing medical or hospital care.  
Apr 22, 2021  
Cat. No. 75323Y  
 
Note. The IRS cannot process Form 5884-D until the  
original employment tax return filed for the same tax  
period has been processed. Please allow 8 to 12 weeks  
for the processing of Form 5884-D.  
Eligible Employee  
An eligible employee is an employee whose principal  
place of employment with the qualified tax-exempt  
organization immediately before the incident period of the  
qualified disaster was in the 2020 qualified disaster zone.  
Form 5884-D must be filed within 2 years from the  
date the tax reported on the employment tax  
!
Qualified Wages  
CAUTION  
return was paid, or 3 years from the date the  
employment tax return was filed, whichever is later.  
Qualified wages are wages a qualified tax-exempt  
organization paid to or incurred for eligible employees at  
any time on or after the date the organization’s activities  
(treated as an active trade or business for this purpose)  
first became inoperable at the employee’s principal place  
of employment (determined immediately before the first  
day of the incident period of the qualified disaster) and  
before the earlier of:  
Where To File  
Send Form 5884-D to the address provided at the bottom  
of the form.  
More Information  
For more information about this credit, see Public Law  
116-260, Division EE, sections 301 and 303(d).  
The date the organization resumed significant activities  
at that place, or  
The date 150 days after the last day of the incident  
Specific Instructions  
period.  
Qualified wages include wages paid or incurred  
Name and Address  
whether an eligible employee performs no services,  
performs services at a place of employment other than the  
principal place of employment, or performs services at the  
principal place of employment before significant activities  
have resumed.  
If the organization receives its mail in care of a third party  
(such as an accountant or an attorney), enter on the street  
address line “C/O” followed by the third party’s name and  
street address or P.O. box.  
A third-party payer who files an aggregate employment  
tax return and is filing Form 5884-D for a qualified  
tax-exempt organization client claiming the credit should  
enter the third party’s name, address, and EIN.  
Qualified wages do not include any wages that exceed  
$6,000 for an eligible employee for an employment tax  
period (reduced by the amount of qualified wages  
credited for any prior employment tax period).  
Include the suite, room, or other unit number after the  
street address. If the Post Office does not deliver mail to  
the street address and the organization has a P.O. box,  
enter the box number instead of the street address.  
Wages qualifying for the credit generally have the same  
meaning as wages subject to social security and  
Medicare taxes. However, qualified wages don't include  
any wages used to claim a coronavirus-related employee  
retention credit on an employment tax return, such as  
Form 941, Employer's QUARTERLY Federal Tax Return.  
Line 1  
If a third-party payer who files an aggregate employment  
tax return is filing Form 5884-D for a qualified tax-exempt  
organization client claiming the credit, enter the name,  
address, and EIN of the qualified tax-exempt organization  
(defined earlier) for whom the third-party payer is claiming  
the credit. All information reported on Form 5884-D by a  
third-party payer for a qualified tax-exempt organization  
must relate solely to the organization identified on line 1.  
When To File  
File Form 5884-D after the organization has filed its  
employment tax return for the employment tax period for  
which it is claiming the credit. File Form 5884-D for each  
employment tax period in or for which the organization  
paid amounts that affect the cumulative credit as  
described under Purpose of Form, earlier.  
Line 2  
A qualified tax-exempt organization that files its  
employment tax return under its own employer  
identification number (EIN) (including organizations that  
file using a payroll service provider or reporting agent)  
should file one Form 5884-D for the organization per  
employment tax period. A third-party payer, such as a  
certified professional employer organization, a  
non-certified professional employer organization, or an  
agent under section 3504, who files an aggregate  
employment tax return and is filing Form 5884-D for a  
qualified tax-exempt organization claiming the credit  
should use the third-party’s name and EIN on Form  
5884-D and should enter the qualified tax-exempt  
organization’s name, address, and EIN on line 1. A  
third-party payer who files an aggregate employment tax  
return must file a single separate Form 5884-D for each  
qualified tax-exempt organization claiming the credit in an  
employment tax period.  
The credit is available only to an organization that is a  
qualified tax-exempt organization. The organization must  
be able to check “Yes” on either line 2a or 2b to qualify for  
the credit.  
Line 3  
Column (a). Enter the DR number of the qualified  
disaster that resulted in the damage that caused the  
organization’s activities (treated as an active trade or  
business for this purpose) to become inoperable in a 2020  
qualified disaster zone. See 2020 Qualified Disaster  
Zones, later.  
Column (b). Enter a brief description of the qualified  
disaster.  
Column (c). Identify the 2020 qualified disaster zone  
local jurisdiction(s) (county, parish, or municipality) where  
-2-  
Instructions for Form 5884-D (April 2021)  
the organization’s activities (treated as an active trade or  
business for this purpose) became inoperable as a result  
of damage sustained from the qualified disaster.  
More than four disasters. If more than four disaster  
declarations apply, leave columns (a) and (c) blank on the  
fourth row and enter “See attached” in column (b). Attach  
a list with the information requested in columns (a)  
through (c) for each applicable qualified disaster. Include  
the name and EIN of the qualified tax-exempt organization  
at the top of the attached list.  
Line 10  
Enter the total taxable social security wages and tips  
reported on the employment tax return indicated on line 4  
for the employment tax period indicated on line 5. For  
example, taxable social security wages and tips included  
on Form 941 for wages paid in the 4th quarter of 2020  
were reported on the following lines.  
Form 941, line 5a, column 1 (taxable social security  
wages).  
Form 941, line 5b, column 1 (taxable social security  
tips).  
Line 5  
As discussed earlier under Purpose of Form, the  
organization claims this credit against the employer’s  
portion of social security tax on wages paid to all  
employees during the employment tax period. The  
organization files Form 5884-D for each employment tax  
period during which it claims a credit. Each Form 5884-D  
figures the cumulative credit the organization is entitled to  
for all periods and reduces the amount claimed for the  
period by any amounts claimed on previously filed Forms  
5884-D.  
Note. If you filed a corrected return (for example, Form  
941-X) for the period indicated on line 5, enter the  
amounts as corrected.  
Line 12  
If your credit is less than $1, we will apply it only if you ask  
us in writing to do so.  
Line 13  
You may pay the amount you owe on line 13 electronically  
using the Electronic Federal Tax Payment System  
(EFTPS), by credit or debit card, or by check or money  
order.  
Check the box(es) on line 5 to indicate the year (and  
quarter, if applicable) for the employment tax period for  
which the organization is claiming the credit.  
The preferred method of payment is EFTPS. For more  
information, visit IRS.gov/EFTPS; call EFTPS Customer  
Service at 800-555-4477 or 800-733-4829 (TDD); or see  
Pub. 966, Electronic Federal Tax Payment System: A  
Guide To Getting Started.  
Line 6  
Enter on line 6a the total qualified wages (defined earlier)  
the organization paid in all employment tax periods  
through the end of the employment tax period indicated  
on line 5 to eligible employees of the organization.  
To pay by credit or debit card, visit the IRS website at  
If you pay by check or money order, make it payable to  
Note. For 2019, a qualified tax-exempt organization can  
potentially have qualified wages only in the 4th calendar  
quarter. A quarterly filer cannot claim the employee  
retention credit for wages paid during any other calendar  
quarter in 2019. Similarly, for 2021, a qualified tax-exempt  
organization can potentially have qualified wages only in  
the 1st and 2nd calendar quarters. A credit claim for any  
period after the 1st and 2nd calendar quarters of 2021  
may be made only for amounts of the credit carried  
forward from previous periods.  
“United States Treasury.” On your check or money order,  
be sure to write your EIN, “Form 5884-D,” and the year  
(and quarter, if applicable) indicated on line 5.  
You do not have to pay if the amount you owe is less  
than $1.  
Signature  
Form 5884-D must be signed by the president, vice  
president, treasurer, assistant treasurer, chief accounting  
officer, or other corporate officer (such as a tax officer)  
authorized to sign. A receiver, trustee, or assignee must  
sign any return filed for the organization. For a trust, the  
authorized trustee must sign.  
Line 8  
Enter the total amount of credits claimed from line 12 of  
any previously filed Forms 5884-D minus the total amount  
of credits repaid from line 13 of any previously filed Forms  
5884-D. Each Form 5884-D figures the cumulative credit  
the organization is entitled to for all periods. The amount  
of the cumulative credit reported on line 6b must be  
reduced by the previously claimed credits and increased  
by any previously repaid amounts to determine the credit  
claimed for the employment tax period for which Form  
5884-D is filed.  
Paid Preparer  
A paid preparer must sign Form 5884-D and provide the  
information in the Paid Preparer Use Only section if the  
preparer was paid to prepare Form 5884-D and is not an  
employee of the filing entity. Paid preparers must sign  
paper returns with a manual signature. The preparer must  
give the organization a copy of Form 5884-D in addition to  
the copy to be filed with the IRS.  
If the credit claimed for a prior period was limited  
If you are a paid preparer, enter your preparer tax  
identification number (PTIN) in the space provided.  
Include your complete address. If you work for a firm,  
enter the firm’s name and the EIN of the firm. You cannot  
use your PTIN in place of the EIN of the tax preparation  
firm.  
by the employer’s social security tax liability for  
that period, any excess credit will be carried  
TIP  
forward and included in the cumulative credit figured on  
any subsequent Form 5884-D. The excess credit is not  
included in the amount on line 8.  
Instructions for Form 5884-D (April 2021)  
-3-  
You can apply for a PTIN online or by filing Form W-12,  
IRS Paid Preparer Tax Identification Number (PTIN)  
Application and Renewal. For more information about  
applying for a PTIN online, visit the IRS website at  
have a valid Form 8655, Reporting Agent Authorization,  
on file with the IRS. However, a reporting agent must  
complete this section if the reporting agent offered legal  
advice, for example, advising the client on determining  
whether its employees are eligible employees for  
purposes of this credit.  
Generally, you are not required to complete this section  
if you are filing Form 5884-D as a reporting agent and  
Paperwork Reduction Act Notice. We ask for the information on this form to carry out the Internal Revenue laws of the  
United States. You are required to give us the information. We need it to ensure that you are complying with these laws  
and to allow us to figure and collect the right amount of tax.  
You are not required to provide the information requested on a form that is subject to the Paperwork Reduction Act  
unless the form displays a valid OMB control number. Books or records relating to a form or its instructions must be  
retained as long as their contents may become material in the administration of any Internal Revenue law. Generally, tax  
returns and return information are confidential, as required by section 6103. However, certain returns and return  
information of tax-exempt organizations and trusts are subject to public disclosure and inspection, as provided by  
section 6104.  
The time needed to complete and file this form will vary depending on individual circumstances. The estimated  
average time is:  
Recordkeeping. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .  
Learning about the law or the form . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .  
Preparing and sending the form to the IRS. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .  
1hr., 50 min.  
10 min.  
23 min.  
If you have comments concerning the accuracy of these time estimates or suggestions for making this form simpler,  
we would be happy to hear from you. You can send us comments from IRS.gov/FormComments. Or you can write to the  
Internal Revenue Service, Tax Forms and Publications Division, 1111 Constitution Ave. NW, IR-6526, Washington, DC  
20224. Don’t send Form 5884-D to this address. Instead, send it to the address provided at the bottom of the form.  
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Instructions for Form 5884-D (April 2021)  
2020 Qualified Disaster Zones  
The following qualified disasters  
resulted in the designation of the  
2020 qualified disaster zones. The  
information needed for credit  
purposes is provided below.  
Florida Hurricane Sally  
(DR-4564-FL)  
The applicable incident period began  
on September 14 and ended on  
September 28, 2020. The date 150  
days after the last day of the incident  
period was February 25, 2021.  
Counties in qualified disaster  
zone. Bay, Escambia, Okaloosa,  
Santa Rosa, and Walton.  
Louisiana Hurricane Zeta  
(DR-4577-LA)  
The applicable incident period began  
on October 26 and ended on  
October 29, 2020. The date 150 days  
after the last day of the incident  
period was March 28, 2021.  
Parishes in qualified disaster  
zone. Jefferson, Lafourche,  
Orleans, Plaquemines, St. Bernard,  
and Terrebonne.  
Alabama Hurricane Sally  
(DR-4563-AL)  
The applicable incident period began  
on September 14 and ended on  
September 16, 2020. The date 150  
days after the last day of the incident  
period was February 13, 2021.  
Counties in qualified disaster  
zone. Baldwin, Escambia, and  
Mobile.  
Iowa Severe Storms  
(DR-4557-IA)  
The applicable incident period began  
and ended on August 10, 2020. The  
date 150 days after the last day of  
the incident period was January 7,  
2021.  
Michigan Severe Storms and  
Flooding (DR-4547-MI)  
The applicable incident period began  
on May 16 and ended on May 22,  
2020. The date 150 days after the  
last day of the incident period was  
October 19, 2020.  
Counties in qualified disaster  
zone. Arenac, Gladwin, Iosco,  
Midland, and Saginaw.  
Alabama Hurricane Zeta  
(DR-4573-AL)  
Counties in qualified disaster  
zone. Benton, Boone, Cedar,  
The applicable incident period began  
on October 28 and ended on  
Clinton, Jasper, Linn, Marshall, Polk,  
Poweshiek, Scott, Story, and Tama.  
October 29, 2020. The date 150 days  
after the last day of the incident  
period was March 28, 2021.  
Louisiana Hurricane Laura  
(DR-4559-LA)  
The applicable incident period began  
on August 22 and ended on August  
27, 2020. The date 150 days after  
the last day of the incident period  
was January 24, 2021.  
Parishes in qualified disaster  
zone. Acadia, Allen, Beauregard,  
Caddo, Calcasieu, Cameron, Grant,  
Jackson, Jefferson Davis, La Salle,  
Lincoln, Morehouse, Natchitoches,  
Ouachita, Rapides, Sabine, St.  
Landry, Union, Vermilion, Vernon,  
and Winn.  
Mississippi Severe Storms,  
Tornadoes, Straight-Line  
Winds, and Flooding  
(DR-4536-MS)  
The applicable incident period began  
and ended on April 12, 2020. The  
date 150 days after the last day of  
the incident period was September 9,  
2020.  
Counties in qualified disaster  
zone. Clarke, Covington, Grenada,  
Jasper, Jefferson Davis, Jones,  
Lawrence, Panola, and Walthall.  
Counties in qualified disaster  
zone. Clarke, Dallas, Marengo,  
Mobile, Perry, Washington, and  
Wilcox.  
California Wildfires  
(DR-4558-CA)  
The applicable incident period began  
on August 14 and ended on  
September 26, 2020. The date 150  
days after the last day of the incident  
period was February 23, 2021.  
Counties in qualified disaster  
zone. Butte, Lake, Lassen,  
Mendocino, Monterey, Napa, San  
Mateo, Santa Clara, Santa Cruz,  
Solano, Sonoma, Stanislaus, Trinity,  
Tulare, and Yolo.  
Mississippi Hurricane Zeta  
(DR-4576-MS)  
Louisiana Hurricane Delta  
(DR-4570-LA)  
The applicable incident period began  
on October 6 and ended on October  
10, 2020. The date 150 days after  
the last day of the incident period  
was March 9, 2021.  
The applicable incident period began  
on October 28 and ended on  
October 29, 2020. The date 150 days  
after the last day of the incident  
period was March 28, 2021.  
California Wildfires  
(DR-4569-CA)  
The applicable incident period began  
on September 4 and ended on  
November 17, 2020. The date 150  
days after the last day of the incident  
period was April 16, 2021.  
Counties in qualified disaster  
zone. Fresno, Los Angeles, Madera,  
Mendocino, Napa, San Bernardino,  
San Diego, Shasta, Siskiyou, and  
Sonoma.  
Counties in qualified disaster  
zone. George, Greene, Hancock,  
Harrison, Jackson, and Stone.  
Parishes in qualified disaster  
zone. Acadia, Allen, Beauregard,  
Calcasieu, Cameron, Iberia,  
Oregon Severe Storms,  
Flooding, Landslides, and  
Mudslides (DR-4519-OR)  
Jefferson Davis, Lafayette, Rapides,  
St. Landry, St. Martin, and Vermilion.  
The applicable incident period began  
on February 5 and ended on  
February 9, 2020. The date 150 days  
2020 Qualified Disaster Zones  
-5-  
 
after the last day of the incident  
period was July 8, 2020.  
Counties in qualified disaster  
zone. Umatilla and Umatilla Indian  
Reservation.  
Sebastián, Santa Isabel, Utuado,  
Villalba, and Yauco.  
Tennessee Severe Storms,  
Tornadoes, Straight-Line  
Winds, and Flooding  
(DR-4476-TN)  
The applicable incident period began  
and ended on March 3, 2020. The  
date 150 days after the last day of  
the incident period was July 31,  
2020.  
Puerto Rico Tropical Storm  
Isaias (DR-4560-PR)  
The applicable incident period began  
on July 29 and ended on July 31,  
2020. The date 150 days after the  
last day of the incident period was  
December 28, 2020.  
Municipalities in qualified disas-  
ter zone. Aguada, Hormigueros,  
Mayagüez, and Rincón.  
Oregon Wildfires and  
Straight-Line Winds  
(DR-4562-OR)  
The applicable incident period began  
on September 7 and ended on  
November 3, 2020. The date 150  
days after the last day of the incident  
period was April 2, 2021.  
Counties in qualified disaster  
zone. Clackamas, Douglas,  
Jackson, Klamath, Lane, Lincoln,  
Linn, and Marion.  
Counties in qualified disaster  
zone. Davidson, Putnam, and  
Wilson.  
Tennessee Severe Storms,  
Tornadoes, Straight-Line  
Winds, and Flooding  
(DR-4541-TN)  
The applicable incident period began  
on April 12 and ended on April 13,  
2020. The date 150 days after the  
last day of the incident period was  
September 10, 2020.  
Puerto Rico Severe Storm and  
Flooding (DR-4571-PR)  
The applicable incident period began  
and ended on September 13, 2020.  
The date 150 days after the last day  
of the incident period was February  
10, 2021.  
Puerto Rico Earthquakes  
(DR-4473-PR)  
The applicable incident period began  
on December 28, 2019, and ended  
on July 3, 2020. The date 150 days  
after the last day of the incident  
period was November 30, 2020.  
Municipality in qualified disaster  
zone. Arecibo.  
Counties in qualified disaster  
South Carolina Severe Storms,  
Tornadoes, and Straight-Line  
Winds (DR-4542-SC)  
The applicable incident period began  
on April 12 and ended on April 13,  
2020. The date 150 days after the  
last day of the incident period was  
September 10, 2020.  
zone. Bradley and Hamilton.  
Utah Earthquake and  
Aftershocks (DR-4548-UT)  
The applicable incident period began  
on March 18 and ended on April 17,  
2020. The date 150 days after the  
last day of the incident period was  
September 14, 2020.  
Municipalities in qualified disas-  
ter zone. Adjuntas, Aguada,  
Añasco, Arecibo, Barceloneta, Cabo  
Rojo, Ciales, Coamo, Corozal,  
Guánica, Guayanilla, Hormigueros,  
Jayuya, Juana Díaz, Lajas, Lares,  
Las Marías, Maricao, Mayagüez,  
Moca, Morovis, Naranjito, Orocovis,  
Peñuelas, Ponce, Sabana Grande,  
Salinas, San Germán, San  
Counties in qualified disaster  
zone. Aiken, Barnwell, Berkeley,  
Colleton, Hampton, Marlboro,  
Counties in qualified disaster  
zone. Davis and Salt Lake.  
Oconee, Orangeburg, and Pickens.  
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2020 Qualified Disaster Zones