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Official form guide
Form 7220: Prevailing Wage and Apprenticeship (PWA) Verification and Corrections
IRS Form 7220 is used to report increased credit or deduction amounts for facilities that satisfy prevailing wage and apprenticeship (PWA) requirements and to calculate any related penalties. A $5,000 penalty per underpaid laborer applies unless correction payments are made by the last day of the first month after the calendar quarter in which the failure occurred.
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IRS Form 7220 - Prevailing Wage and Apprenticeship (PWA) Verification and Corrections
IRS Form 7220 is used to report increased credit or deduction amounts for facilities that satisfy prevailing wage and apprenticeship (PWA) requirements and to calculate any related penalties. A $5,000 penalty per underpaid laborer applies unless correction payments are made by the last day of the first month after the calendar quarter in which the failure occurred.
Risk Radar
Scan points- 1Missing the correction‑payment deadline triggers a $5,000 per worker penalty.
- 2Failing to check “Yes” on line 5 when the facility was placed in service in the current tax year.
- 3Selecting the wrong credit form on line 6, which could misreport the increased credit or deduction.
- 4Leaving line 7 unanswered about whether work was done under a qualifying project labor agreement.
- 5Omitting correction payments on line 8 despite having underpaid laborers or mechanics.
Plain English
This form tells the IRS which projects you are getting extra tax benefits for because you met prevailing‑wage rules. It also reports any penalties if workers were paid below the required wage. You fill it out for each facility that qualifies. The IRS uses the information to adjust your credits or deductions.
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 a facility that satisfies certain prevailing wage and apprenticeship (PWA) requirements.
- Do not use this form when the Beginning of Construction (BOC) or the One Megawatt exception applies.
- Check Form 8908 instead when you are claiming increased amounts for meeting certain PWA requirements on Form 8908.
Form selector
Use this form or another form?
Claiming increased credit on multiple facilities
Each facility requires its own Form 7220; otherwise use Form 8835 for the credit claim
✓ Confirm each facility has a separate Form 7220
Claiming increased amounts under PWA requirements on Form 8908
Form 7220 is not required; use Form 8908 for the credit claim
✓ Verify you are filing Form 8908 instead of Form 7220
Claiming increased amounts under PWA requirements on Form 7213, Part II
Form 7220 is not applicable; use Form 7213 for the credit claim
✓ Ensure you select Form 7213 rather than Form 7220
Deadline or filing window
The filing is triggered when you claim increased credit or deduction amounts for PWA‑eligible facilities. Any correction payments must be made by the last day of the first month following the end of the calendar quarter when the underpayment occurred. The $5,000 per worker penalty is waived only if the correction is timely and either the failure occurred in less than 10% of pay periods or total underpayments were not more than 5% below the prevailing wage rate. No extension provision is mentioned in the source.
Checklist
What you need before filling it out
Line 8 – correction payments
Details of correction payments and any associated penalties · Form 7220, Part IV
Line 9 – Good Faith Effort Exception
Evidence of good‑faith effort per Reg 1.45‑8(f)(1) · Form 7220, Part V
Line 10 – alterations or repairs
Statement attesting no alterations or repairs (if No) · Form 7220 attachment
Column (c) – labor classification
Davis‑Bacon Act classification for each worker · Form 7220, Part II
Column (d) – number of laborers for penalty waiver
Count of laborers qualifying for waiver · Form 7220, Part II
Before you submit
- 1Confirm the form revision date reads 12‑2025.
- 2Enter the IRS‑issued registration number if making an elective payment election (line 1).
- 3Provide the facility/project description (line 2a) and address (line 2b) if applicable.
- 4Enter latitude and longitude signs as required (line 2c).
- 5Indicate the construction start date (line 3) and placed‑in‑service date (line 4).
- 6Answer Line 8 and complete Part IV when “Yes” is selected.
- 7Answer Line 9 and complete Part V when “Yes” is selected.
- 8Answer Line 10 and complete Part II when “Yes” is selected, or attach the required statement when “No”.
- 9Attach any required statements or supporting documents referenced in the instructions.
How to file this form
- 1Complete each required line on Form 7220 and attach supporting statements or calculations as needed.
- 2Sign and date the form where required.
- 3Make a copy of the completed form for your records.
- 4Mail the form to the IRS address indicated in the instructions and retain the mailing receipt as proof of filing.
Known limitations
- 1Does not apply to routine maintenance activities, which are excluded from PWA requirements.
- 2Special rules apply for Project Labor Agreements (PLAs) under section 45U, requiring separate consideration.
- 3Only facilities involving construction, alteration, or repair as defined in 29 CFR part 5.2 are covered.
- 4The increased credit is subject to recapture within a 5-year period after claim.
- 5Penalty calculations use $5,000 per underpaid laborer and $50 per unit in column (h).
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->Form 7220 revision date is December 2025 (12‑2025) and the instructions direct users to www.irs.gov/Form7220 for the latest information. The source notes this is a new form.
What changed or needs a fresh check
- Edition date — confirm the form revision reads December 2025 (12‑2025)
- Fee — Not stated in the official source
- Mailing address — Not stated in the official source
- Signature — Not stated in the official source
Quick Facts
Downloads
After you file
- 1Sign the completed Form 7220 before submission.
- 2Keep a copy of the filed Form 7220 for your records.
- 3Use the current edition of Form 7220 (revision 12/2025) when filing.
- 4If an error is discovered after filing, file an amended Form 7220 with corrected information.
Sources
- SRCInstructions p.2 — routine maintenance is excluded from PWA requirements.
- SRCInstructions p.2 — special rules apply for PLAs under section 45U.
- SRCInstructions p.5 — penalty calculated by multiplying column (e) by $5,000.
- SRCInstructions p.5 — column (i) is column (h) multiplied by $50.
- SRCInstructions p.1 — increased credit amount is subject to recapture during the 5-year period.
- SRCInstructions p.5 — column (b) requires EIN of entity directly employing laborers/mechanics.
- SRCInstructions p.5 — column (f) and column (i) amounts reported on Form 4255, Part I.
- SRCForm p.1 — attach Form 7220 to your tax return.
Common confusion points
Do I need to report routine maintenance costs?
Routine maintenance is excluded from PWA requirements.
→ Confirm the activity is not listed as routine maintenance per Instructions p.2.
How are PLAs under section 45U handled?
Special rules apply for PLAs under section 45U.
→ Check Instructions p.2 for the specific regulations.
What is the penalty amount per underpaid laborer?
Penalty calculated by multiplying column (e) by $5,000.
→ Verify column (f) calculation follows Instructions p.5.
How is the $50 multiplier used?
Column (i) is column (h) multiplied by $50.
→ Ensure column (i) matches the product per Instructions p.5.
What credit recapture period applies?
Increased credit amount is subject to recapture during the 5-year period.
→ Track the 5-year window as noted in Instructions p.1.
Which entity’s EIN should I enter in column (b)?
Enter the EIN of the entity directly employing the laborers/mechanics.
→ Confirm the EIN matches the employer per Instructions p.5.
Workflow map
Related forms and next steps
Before
Current
After
Often used with
⚠ If something goes wrong
- Form 4255 – consult its instructions for correcting reported amounts.
Questions about IRS Form 7220
What is IRS Form 7220 used for?
This form tells the IRS which projects you are getting extra tax benefits for because you met prevailing‑wage rules. It also reports any penalties if workers were paid below the required wage. You fill it out for each facility that qualifies. The IRS uses the information to adjust your credits or deductions.
Who must file IRS Form 7220?
Taxpayers who are claiming increased credits or deductions for satisfying certain prevailing wage and apprenticeship (PWA) requirements must file IRS Form 7220.
What information does IRS Form 7220 require?
The form collects details for each facility, such as whether it was placed in service this tax year, which credit form is being used, if work was under a qualifying project labor agreement, any correction payments made, and any applicable penalties.
How do I complete IRS Form 7220?
Begin by checking line 5 to indicate if the facility was placed in service during the current tax year. If Yes, complete Parts II and III and select the appropriate credit form on line 6. Answer lines 7 through 10 about project labor agreements, correction payments, good‑faith exceptions, and alterations or repairs, then fill out Part IV for any correction payments and penalties. Sign the form before filing.
What happens if IRS Form 7220 is filed incorrectly?
If wages were paid below the prevailing wage rate, the form triggers a penalty of $5,000 multiplied by the number of underpaid laborers or mechanics, unless correction payments are timely made.
Do I need to report routine maintenance costs?
Routine maintenance is excluded from PWA requirements. Confirm the activity is not listed as routine maintenance per Instructions p.2.
How are PLAs under section 45U handled?
Special rules apply for PLAs under section 45U. Check Instructions p.2 for the specific regulations.
What is the penalty amount per underpaid laborer?
Penalty calculated by multiplying column (e) by $5,000. Verify column (f) calculation follows Instructions p.5.
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