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Form 7220: Prevailing Wage and Apprenticeship (PWA) Verification and Corrections
IRS Form 7220 is used for Prevailing Wage and Apprenticeship (PWA) Verification and Corrections, allowing filers to report increased credit or deduction amounts claimed for satisfying PWA requirements. A penalty of $5,000 per laborer/mechanic can apply.
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IRS Form 7220 - Prevailing Wage and Apprenticeship (PWA) Verification and Corrections
IRS Form 7220 is used for Prevailing Wage and Apprenticeship (PWA) Verification and Corrections, allowing filers to report increased credit or deduction amounts claimed for satisfying PWA requirements. A penalty of $5,000 per laborer/mechanic can apply.
Risk Radar
Scan points- 1Failure to waive a penalty payment due to missing correction payments is the highest risk.
- 2Failing to check 'Yes' on Line 8 when making correction payments related to underpayment.
- 3Not completing Part IV when checking 'Yes' on Line 8 regarding correction payments.
- 4Omitting the entity name in Column (a) of Part IV.
- 5Entering an incorrect EIN in Column (b) of Part IV for the employing entity.
Plain English
This form helps taxpayers report when they have earned more tax credits or deductions because they met certain wage or apprenticeship rules on a property or project. It also allows filers to calculate any penalties owed if the prevailing wage requirements were not fully met for that facility or project.
Submission Date
- Filing date: 2026-01-08 11:11:05
- Preparation window: collect IDs, supporting records, and signatures in advance.
- Final review: verify names, dates, and required fields before submission.
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What this form is for
- Use this form when claiming increased credit or deduction amounts for satisfying certain Prevailing Wage and Apprenticeship (PWA) requirements for a facility.
- Do not use Form 7220 if the facility did not satisfy the Beginning of Construction (BOC) or One Megawatt exception, as you are not required to file it in those cases.
- Check Form 8908 or Form 7213 when claiming increased amounts for meeting certain PWA requirements on those specific forms.
Form selector
Use this form or another form?
Reporting ongoing compliance for prior year alterations/repairs
You must file a separate Form 7220 to report ongoing compliance for facilities placed in service previously.
✓ Confirm you have a separate Form 7220 ready.
Claiming increased credit via BOC or One Megawatt exception
If you satisfy the BOC or One Megawatt exception, filing Form 7220 is not required (though it can be used to calculate penalties).
✓ Verify if your claim qualifies for these exceptions on Page 1.
Reporting corrections related to underpayment of wages
Complete Part IV if you check "Yes" on Line 8, reporting prior correction payments with associated penalty payments.
✓ Ensure Part IV is fully completed alongside the necessary checks.
Deadline or filing window
If an underpayment failure occurs in less than 10% of pay periods, or total underpayments are not more than 5% below the prevailing wage rate, the $5,000 penalty may be waived. The correction payment must be made by the last day of the first month following the end of the calendar quarter when the failure happened.
Checklist
What you need before filling it out
Facility/Project Description
A description of facility/project · Part I, Line 2
Date Construction Began
Date construction began (MM/DD/YYYY) · Part I, Line 3
Good Faith Effort Exception Reliance
Yes/No selection on Line 9 · Part I, Line 9
Alterations or Repairs Performed
Yes/No selection on Line 10 · Part I, Line 10
Labor Classification (Davis-Bacon)
Labor classification as defined by the Davis-Bacon Act · Column (c), Part II/IV
Penalty Payment Reporting
Yes/No selection on Line 8 · Part I, Line 8
Before you submit
- 1Attach Form 7220 to your tax return.
- 2Ensure a separate Form 7220 is filed for each facility claiming increased credit or deduction amounts.
- 3If reporting alterations/repairs, confirm that Part II is completed (or the required statement is attached if Line 10 is "No
- 4).
- 5If reporting corrections, confirm that Part IV is completed (if Line 8 is checked "Yes
- 6).
- 7Verify that Column (c) lists labor classifications as defined by the Davis-Bacon Act.
- 8Confirm that coordinates include a or "-" sign in the first box for both Latitude and Longitude.
- 9If relying on Good Faith Effort Exception, confirm Part V is completed if Line 9 is checked "Yes".
How to file this form
- 1Complete Part I by entering facility details, including registration number (if applicable), description, address, coordinates, and the dates construction began and was placed in service.
- 2Determine if you are reporting corrections or alterations/repairs, then check the appropriate boxes on Line 8 and Line 10 to guide completion of Parts II and IV.
- 3Fill out Part II with details regarding labor classifications (Column c), penalty waivers (Column d), and penalty payments (Column e) related to construction, alteration, or repair.
- 4Complete Part V if you checked "Yes" on Line 9 to report reliance on the Good Faith Effort Exception.
- 5Attach Form 7220 to your corresponding tax return.
Known limitations
- 1Special rules apply for PLAs under section 45U, Zero-emission nuclear power production credit.
- 2The increased credit amount reported on Form 7220 is subject to recapture during the 5-year period following the filing date.
- 3For the section 45L new energy efficient home credit, the filer must use the date the qualified residence was acquired by a person for use as a residence.
Field map
Compact field-by-field guide
General Info
2 items
Full legal name and taxpayer identification number (SSN or EIN).
Current mailing address.
Details
2 items
Complete all applicable sections of this form according to the official IRS instructions.
Enter the relevant dollar amount if this form involves tax calculation.
Certification
1 items
Read and acknowledge any certifications required by this form.
Signatures
1 items
Sign and date. Unsigned forms cannot be processed.
Almost done reviewing the fields?
Fillable formOpen in Editor->The current edition of IRS Form 7220 is December 2025, and filers can find the latest information regarding developments at IRS.gov/Form7220.
What changed or needs a fresh check
- Edition date — confirm revision reads December 2025 (12-2025).
- Form number — confirm it reads Form 7220.
- Attachment Sequence No. — confirm the number is 220.
- IRS Registration Number — enter the IRS-issued registration number if making an elective payment or transfer election (Part I, Line 1).
- Coordinates — verify that Latitude and Longitude boxes include a or "-" sign.
Quick Facts
Downloads
After you file
- 1Attach Form 7220 to the corresponding tax return.
- 2Keep copies of the filed Form 7220 and its instructions.
- 3If reporting corrections, complete as many copies of Part IV as necessary.
- 4Report column (i), line 18 from Form 7220 on the corresponding line of Form 4255, Part I, columns (p)(1), (p)(2), and/or (p)(3).
- 5Report column (f), line 18 from Form 7220 on the corresponding line of Form 4255, Part I, columns (o)(1), (o)(2), and/or (o)(3).
Sources
- SRCInstructions p.1 — Form 7220, Prevailing Wage and Apprenticeship (PWA) Verification and Corrections, reports information when claiming increased credit or deduction amounts for satisfying PWA requirements.
- SRCInstructions p.1 — The increased credit amount is subject to recapture during the 5-year period following the filing date of Form 7220 (12-2025).
- SRCInstructions p.2 — 'Bona fide fringe benefits' are defined as benefits described in 29 CFR part 5, including medical/hospital care and retirement/death benefits.
- SRCInstructions p.3 — For the section 45L new energy efficient home credit, use the date the qualified residence was acquired by a person for use as a residence.
- SRCInstructions p.5 — Column (i) is calculated by multiplying column (h) by $50; this result must be reported on Form 4255, Part I, columns (p)(1), (p)(2), and/or (p)(3).
- SRCInstructions p.5 — Column (f) is calculated by multiplying column (e) by $5,000; this result must be reported on Form 4255, Part I, columns (o)(1), (o)(2), and/or (o)(3).
- SRCForm p.1 — The form requires the filer to attach it to their tax return.
- SRCInstructions p.6 — Comments regarding accuracy or simplicity suggestions for Form 7220 can be provided, referencing instructions for the filed tax return.
Common confusion points
What is a 'bona fide fringe benefit'?
This term refers to specific benefits described in 29 CFR part 5.
→ Check the definition provided in Instructions p.2.
When should you use the date for the section 45L credit?
Use the date the qualified residence was acquired by a person for use as a residence.
→ Confirm this detail on Instructions p.3.
What does 'construction, alteration, or repair' generally include?
It includes activities described in 29 CFR part 5.2, but excludes routine maintenance like inspections and cleaning.
→ Review the exclusions listed in Instructions p.2.
How do you calculate column (i)?
Multiply column (h) by $50 and enter the result in column (i).
→ Verify this calculation requirement on Instructions p.5.
What is the difference between column (g)(i) and column (g)(ii)?
Column (g)(i) is total wages paid; column (g)(ii) is total interest paid to laborers/mechanics.
→ Check these definitions in Instructions p.5.
When should you leave a field blank?
If column (h) was blank, leave column (i) blank; if column (e) was blank, leave column (f) blank.
→ Confirm this instruction on Instructions p.5.
Workflow map
Related forms and next steps
Before
Current
After
Often used with
⚠ If something goes wrong
- Part IV of Form 7220 — This section is used specifically for Corrections and Penalties related to failure to satisfy Prevailing Wage Requirements.
Questions about IRS Form 7220
What is IRS Form 7220 used for?
This form helps taxpayers report when they have earned more tax credits or deductions because they met certain wage or apprenticeship rules on a property or project. It also allows filers to calculate any penalties owed if the prevailing wage requirements were not fully met for that facility or project.
Who must file IRS Form 7220?
Taxpayers who are claiming increased credit or deduction amounts for satisfying certain PWA requirements must use Form 7220 for each facility being reported.
What information does IRS Form 7220 require?
The form collects information about the facility's status (e.g., placed in service), whether a Project Labor Agreement was used, and details regarding correction payments made under Part IV. Line 6 requires selecting the specific tax form where the increased credit is claimed.
When is IRS Form 7220 due?
Filing timing depends on when the failure occurs; penalty payment is waived if corrections are made by the last day of the first month following the end of the calendar quarter when the failure occurred.
Where do I file IRS Form 7220?
The instructions do not specify a single service center, but general filing mechanics apply. Filers should reference IRS.gov/Form7220 for the latest routing information.
How do I complete IRS Form 7220?
First, complete Part II/III if the facility was placed in service; check lines 6 through 10 to indicate specific conditions. If correction payments were made, complete Part IV, entering the employer's name and EIN in columns (a) and (b). Finally, multiply column (h) by $50 and report that result on line 18 of Form 7220.
What happens if IRS Form 7220 is filed incorrectly?
If penalties are owed, they amount to $5,000 multiplied by the total number of laborers and mechanics paid below the prevailing wage rate described in section 45(b) (7)(A).
What is a 'bona fide fringe benefit'?
This term refers to specific benefits described in 29 CFR part 5. Check the definition provided in Instructions p.2.
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