The COVID Project
The record
- Jurisdiction
- United States; Department of the Treasury and Internal Revenue Service (federal)
- Level
- Federal
- Authority
- CARES Act § 2301(k); FFCRA § 7001(f), § 7003(f); I.R.C. § 7805(a)
- Issued
- 2020-03-31 Mar. 31, 2020
- Effective
- 2020-03-31 (deposits due on or after March 13, 2020 for wages paid after March 12, 2020) (read as 2020-03-31)
- End
- 2020-12-31 (for the 2020 credits; later notices carried the relief into 2021) (read as 2020-12-31)
- In force
- Mar. 31, 2020 to Dec. 31, 2020
- Quarters
- 2020 Q22020 Q32020 Q4
2020 Q22020 Q32020 Q42021 Q12021 Q22021 Q3
- Limitation types
- Other
- Addressees
- employers paying qualified sick leave wages, qualified family leave wages and qualified wages eligible for the employee retention credit
- Functions reached
- TX payroll tax function of every eligible employer
- HR payroll
- OP
- Collection
- Federal financial regulators AGY-FED-FINANCIAL
Operative words
Relief from Penalty for Failure to Deposit Employment Taxes... Section 3 of this notice provides employers relief from the failure to deposit penalty imposed by section 6656 of the Internal Revenue Code (Code) for an employer's failure to timely deposit employment taxes to the extent that the amounts not deposited are equal to or less than the amount of refundable tax credits to which the employer is entitled under the Families First Act and the CARES Act.... Employers paying qualified sick leave wages and qualified family leave wages [and qualified wages for the employee retention credit may retain the amount of employment taxes] that would otherwise be required to be deposited without incurring a failure to deposit penalty.
Enforcement
I.R.C. § 6656 penalty waived to the extent of the credits
Notes
The mechanics by which the ERC was paid in real time; evidence that Congress and Treasury designed the credit for employers whose operations the orders had suspended