By Payroll and Entitlements Editorial Staff
The IRS has provided penalty relief for failure to deposit employment taxes under Code Sec. 6656 to employers entitled to the new refundable tax credits provided under the Families First Coronavirus Response Act (Families First Act) (P.L. 116-127), and the Coronavirus Aid, Relief, and Economic Security (CARES) Act (P.L. 116-136). The relief is provided the extent that the amounts not deposited are equal to or less than the amount of refundable tax credits to which the employer is entitled under the Families First Act and the CARES Act.
The relief applies to deposits of employment taxes reduced in anticipation of:
- the credits for qualified leave wages paid with respect to the period beginning April 1, 2020, and ending December 31, 2020; and
- the credits for qualified retention wages paid with respect to the period beginning on March 13, 2020, and ending December 31, 2020.
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