The IRS announced on April 13, 2021 the penalty relief provided by Notice 2020-22 to apply to deposits of employment taxes reduced in anticipation of the following credits has been extended:

• Paid sick and family leave credits under the Families First Coronavirus Response Act, as amended by the Certifying Acceptance Agents (CAA), with respect to qualified leave wages paid during January 1, 2021 to March 31, 2021.
• Paid sick and family leave credits under Secs. 3131, 3132, and 3133 with respect to qualified leave wages paid during April 1, 2021 to September 30, 2021.
• The employee retention credit under Section 2301 of the CARES Act, as amended by the CAA, with respect to qualified wages paid during January 1, 2021 to June 30, 2021.
• The employee retention credit under Sec. 3134 with respect to qualified wages paid during July 1, 2021 to December 31, 2021.
• The credit for continuation coverage premium assistance under Sec. 6432, for COBRA continuation coverage premiums not paid by assistance-eligible individuals for such coverage by reason of Section 9501(a)(1) of the American Rescue Plan Act during April 1, 2021 to September 30, 2021.

The amount of employment taxes the employer does not timely deposit must be less than or equal to the amount of the employer’s anticipated credits for the calendar quarter as of the time of the required deposit, and the employer must not have sought payment of an advance credit.

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