Instructions for Form 5884-D

Instructions for Form 5884-D

Department of the Treasury

Internal Revenue Service

(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.

Future Developments

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/

Form5884D.

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 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:

• Additional qualified wages were paid in the subsequent

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

• Both of the above apply.

Apr 22, 2021

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

tax-exempt organization per employment tax period.

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.

The amount properly claimed on Form 5884-D is

TIP treated as a credit on the first day of the

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.

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.

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:

• 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

providing medical or hospital care.

Cat. No. 75323Y

Eligible Employee

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.

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

CAUTION return was paid, or 3 years from the date the

employment tax return was filed, whichever is later.

!

Qualified Wages

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:

• The date the organization resumed significant activities

at that place, or

• The date 150 days after the last day of the incident

period.

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).

Specific Instructions

Name and Address

Qualified wages include wages paid or incurred

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

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Instructions for Form 5884-D (April 2021)

Line 10

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.

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).

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 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.

• 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.

• To pay by credit or debit card, visit the IRS website at

IRS.gov/PayByCard.

• If you pay by check or money order, make it payable to

“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.

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.

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.

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.

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.

TIP by the employer’s social security tax liability for

that period, any excess credit will be carried

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)

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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

IRS.gov/PTIN.

Generally, you are not required to complete this section

if you are filing Form 5884-D as a reporting agent and

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.

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 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

1hr., 50 min.

Learning about the law or the form . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

10 min.

Preparing and sending the form to the IRS. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

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.

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.

Alabama Hurricane Zeta

(DR-4573-AL)

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.

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.

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.

2020 Qualified Disaster Zones

Florida Hurricane Sally

(DR-4564-FL)

Louisiana Hurricane Zeta

(DR-4577-LA)

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.

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.

Counties in qualified disaster

zone. Bay, Escambia, Okaloosa,

Santa Rosa, and Walton.

Parishes in qualified disaster

zone. Jefferson, Lafourche,

Orleans, Plaquemines, St. Bernard,

and Terrebonne.

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.

Counties in qualified disaster

zone. Benton, Boone, Cedar,

Clinton, Jasper, Linn, Marshall, Polk,

Poweshiek, Scott, Story, and Tama.

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.

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.

Parishes in qualified disaster

zone. Acadia, Allen, Beauregard,

Calcasieu, Cameron, Iberia,

Jefferson Davis, Lafayette, Rapides,

St. Landry, St. Martin, and Vermilion.

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.

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.

Mississippi Hurricane Zeta

(DR-4576-MS)

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.

Counties in qualified disaster

zone. George, Greene, Hancock,

Harrison, Jackson, and Stone.

Oregon Severe Storms,

Flooding, Landslides, and

Mudslides (DR-4519-OR)

The applicable incident period began

on February 5 and ended on

February 9, 2020. The date 150 days

-5-

after the last day of the incident

period was July 8, 2020.

Sebastián, Santa Isabel, Utuado,

Villalba, and Yauco.

Counties in qualified disaster

zone. Umatilla and Umatilla Indian

Reservation.

Puerto Rico Tropical Storm

Isaias (DR-4560-PR)

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.

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.

Municipalities in qualified disaster 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

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.

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.

Municipalities in qualified disaster zone. Aguada, Hormigueros,

Mayagüez, and Rincón.

Counties in qualified disaster

zone. Davidson, Putnam, and

Wilson.

Puerto Rico Severe Storm and

Flooding (DR-4571-PR)

Tennessee Severe Storms,

Tornadoes, Straight-Line

Winds, and Flooding

(DR-4541-TN)

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.

Municipality in qualified disaster

zone. Arecibo.

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.

Counties in qualified disaster

zone. Aiken, Barnwell, Berkeley,

Colleton, Hampton, Marlboro,

Oconee, Orangeburg, and Pickens.

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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.

Counties in qualified disaster

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.

Counties in qualified disaster

zone. Davis and Salt Lake.

2020 Qualified Disaster Zones