Payroll Taxes Deferred Under
CARES ACT Due in December

COVID-19 Business Update

The Internal Revenue Service is sending notices to taxpayers who deferred their Social Security taxes last year, warning them that half the taxes will be due by the end of this year.

Last week the IRS said that it would be sending informational only CP256V Notices to employers who chose to defer paying some Social Security taxes under the CARES Act in October and November. The notice reminds them that the first installment of deferred Social Security taxes will be due by the end of December and the remainder by the end of next year.

The payroll tax deferral helped taxpayers who found that they desperately needed funds to pay their regular expenses during the first year of the pandemic.

Most taxpayers and companies avoided opting for the payroll tax deferral last year, knowing the taxes would eventually have to be paid.

The information presented here should not be construed as legal, tax, accounting, or valuation advice. No one should act on such information without appropriate professional advice and after a thorough examination of the particular situation.