What This Notice Means

CP256V is a courtesy reminder about Social Security tax a business deferred under Section 2302 of the CARES Act. The IRS sent it as a courtesy reminder shortly before the December 31, 2021 and December 31, 2022 due dates. It is not an Affordable Care Act employer penalty notice. CP56V is the version sent to individuals, such as self-employed people and household employers.

What Was Deferred

Employers could defer deposit and payment of the employer share of Social Security tax otherwise due from March 27, 2020 through December 31, 2020. The repayment schedule:

  • Half of the eligible deferred amount was due by December 31, 2021.
  • The remainder was due by December 31, 2022.

Payments made before December 31, 2021 were applied first to the 2021 installment. If an employer also deferred employees' Social Security tax, it had to withhold and pay that amount from wages paid during 2021.

What to Do Now

Both due dates have passed. Confirm the deferred amounts were paid in full. If any part of the employer's share was paid late, the failure to deposit penalty applies to the total deferral amount. Failure to pay penalty and interest run on any unpaid amount starting January 1 after the missed due date. If you can't pay it all, pay as much as you can, as often as you can.

How to Pay

Make deferral payments separately from your other tax payments. IRS systems won't recognize a deferral payment combined with other payments or sent as a regular deposit. Make a separate payment for each tax period with deferred tax. In EFTPS, employers select the deferral payment and change the date to the applicable tax period. You can also pay by card, check, or money order.

If You Disagree

Compare the notice with the deferral amounts reported on your 2020 employment tax returns. If the figures don't match, call the number on your notice with your returns in hand.

If you have an unpaid CARES Act payroll tax deferral balance, call us at (813) 229-7100.