The IRS said it is in the process of 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 reminds them that the first installment of deferred Social Security taxes will be due by the end of the year.
The CARES Act allowed these types of taxpayers 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.
The IRS said it will issue courtesy notices before each installment is due.