Repayment of Deferred Social Security Taxes
The IRS is currently sending informational-only CP256V Notices to self-employed individuals and household employers that chose to defer paying certain Social Security taxes under the CARES Act. The new notice is a reminder that the first installment of deferred Social Security taxes is due by the end of the year.
The CARES Act allowed self-employed individuals and household employers to defer the payment of certain Social Security taxes on their Form 1040 for tax year 2020 over the next two years. Half of the deferred Social Security tax is due by Dec. 31, 2021, and the remainder is due by Dec. 31, 2022.
These are courtesy notices only, sent before each installment is due – no response is needed.