Reminder: If you’re like many businesses that took IRS up on the pandemic-related relief offer in 2020 to put off paying Social Security taxes, the last payment installment is due by December 31st.
If you’re experiencing deja vu, there’s a reason. December 31, 2021 was the deadline for the first half of the deferred amount.
Several ways to pay IRS
A quick huddle with A/P may be in order for which of the IRS-accepted payment methods you’ll use:
- Electronic Federal Tax Payment System (EFTPS). After you’re enrolled (it’s free), go to the “Tax Type Selection” screen, choose “Deferred Social Security Tax,” then change the date to the applicable tax period (the calendar quarter in 2020 for which tax was deferred). Visit EFTPS.gov or call 800-555-4477 or 800-733-4829 for more information.
- Direct Pay for self-employed individual taxpayers. At IRS.gov/payments/direct-pay, select the “Balance Due” reason for payment and apply the payment to the 2020 tax year where the payment was deferred. (Direct Pay can’t be used to pay employment taxes.)
- Debit card, credit card or digital wallet. At IRS.gov/payments, select “installment agreement” and apply the payment to the 2020 tax year where the payment was deferred. (Note that IRS doesn’t charge a fee for this service, but your third-party payment processor might.), or
- Check/money order made payable to United States Treasury. (For info on where to mail payments, see Instructions for Form 941.)
No matter which option you choose, it must be made separately from your other tax payments and deposits. This will ensure that it’s credited properly so you don’t receive a follow-up bill or notice.
Natural disaster tax relief news
Businesses hit by Hurricane Nicole in the following Florida counties now have until March 15, 2023 to file business tax returns that normally would’ve been due to IRS January 31st, and to make tax payments that normally would’ve been due January 17th:
- Indian River
- Palm Beach
- St. Johns
- St. Lucie, and
The March 15 tax deadline also applies to businesses impacted by a severe winter storm/snowstorm on November 18 in the following New York counties:
- St. Lawrence, and
If an affected taxpayer receives a late filing/late payment penalty notice that has an original or extended filing, payment or deposit due date that falls within the postponement period, the taxpayer should call the phone number on the notice to have the IRS abate the penalty.
If you were impacted by these storms, but are outside the covered disaster area, call the IRS disaster hotline at 866-562-5227 to request tax relief.