IRM Interim Guidance: CARES Act Deferrals of Employee Social Security Taxes, Early Termination of Employee Retention Credit (IRC §3111)

Revision to Internal Revenue Manual 20.1.4, Failure to Deposit Penalty, that would add guidance on Social Security tax deferment and early termination of the employee retention credit, released Jan. 14. For taxpayers subject to the deferral, a false credit will initially show when the employer and employee Social Security taxes deferred but reversal will post when payment is applied toward the deferral, the IRS stated. If the taxpayer fails to pay the deferred tax amounts by the applicable installment due dates, Failure to Pay (FTP) and Failure to Deposit (FTD) penalties, and interest, will begin to accrue on the ...