IRS Issues Guidance Providing Penalty Relief for Employer Failure to Timely Deposit Employment Taxes
The Internal Revenue Service (IRS) issued guidance providing penalty relief for an employer’s failure to timely deposit employment taxes with the IRS. In particular, this notice provides relief from section 6656 of the Internal Revenue Code for employers required to pay qualified sick leave wages, qualified family leave wages, and qualified health plan expenses allocable to these wages, mandated by the Families First Coronavirus Response Act. The guidance also provides relief from section 6656 for employers subject to a full or partial closure order due to COVID-19 or experiencing a statutorily specified decline in business under the Coronavirus Aid, Relief, and Economic Security Act. Finally, the guidance provides relief from section 6656 for certain employers for which COBRA continuation coverage premiums were not paid by assistance eligible individuals for such coverage by reason of section 9501(a)(1) of the American Rescue Plan Act.
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