The IRS continues to take extraordinary steps to provide tax relief in many forms to taxpayers. Below are summaries of two such measures that are relevant to many of our clients.
Of course, Sol Schwartz & Associates professionals are available to discuss the details of how these IRS actions may apply to your specific situati
on. Call us anytime at 210.384.8000 and we will respond promptly.
Deadlines extended for foreign informational forms, schedules
In notice 2020-23 the IRS has extended more deadlines to cover additional forms and taxes. In addition to the extension provided in prior notices, the current notice covers various foreign informational forms along with their corresponding schedules, such as:
- Schedule H
- Schedule SE,
- Forms 3520, 5471, 5472, 8621, 8858, 8865, and 8938
The relief also includes the installment payment under Section 965(h), and quarterly estimated payments due on June 15.
The relief is automatic. Taxpayers do not have to call the IRS or file any extension forms or send letters or other documents to receive this relief. For more details click here.
Employers can defer their share of Social Security tax on payrolls
The IRS has is
sued additional guidance on the issue of deferral of the employer’s share of the Social Security tax on payrolls.
Even if an employer has applied for the PPP loan, the employer may defer payment of its share of the Social Security tax due for deposit periods beginning March 27 and ending on December 31. There are no interest and penalties assessed on this deferred amount.
However, once the lender (bank) gives notice to the employer that the PPP loan has bee forgiven, the employer is no longer eligible to defer payment of the employer’s share of social security tax DUE AFTER that date of notification of the debt forgiveness. The Social Security tax that was deferred through the date before notification of the PPP loan forgiveness continues to be deferred and will be due as follows:
- On December 31, 2021, 50 percent of the deferred amount is due.
- On December 31, 2022, the remaining deferred amount is due.
Employers are advised to take full advantage of this cash deferral. An IRS FAQ is available here.
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