5884-D 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
-2-

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)

-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
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.

-4-

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.

-6-

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