The IRS today released an advance version of Notice 2021-11 to further extend the time period employers must withhold and pay “Applicable Taxes” to December 31, 2021 (from April 30, 2021) related to a payroll tax deferral for certain employers as a response to the coronavirus (COVID-19) pandemic.
Notice 2021-11 [PDF 101 KB] also further postpones to January 1, 2022 (rather than May 1, 2021) the period when interest, penalties, and additions to tax for late payment with respect to any unpaid deferred taxes will begin to accrue.
The IRS in August 2020 issued Notice 2020-65 providing employers with the option to defer withholding the employee portion of social security tax payments from September 1, 2020, through December 31, 2020, with the deferred payroll taxes to be repaid from January 1, 2021, through April 30, 2021. Read TaxNewsFlash
In response to provisions enacted at the end of 2020 as part of the Consolidated Appropriations Act, 2021 (Pub. L. No. 116-260) (enacted December 27, 2020), today’s notice modifies Notice 2020 65 by extending the time during which employers must withhold and pay certain taxes that were deferred under Notice 2020-65.
Read a related IRS release—IR-2021-17 (January 19, 2021).
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