On February 28, 2022, the IRS published Instructions for Form 941 (Rev. March 2022), Employer’s QUARTERLY Federal Tax Return. Among the new updates related to COVID-19, social security and Medicare tax for 2022, there is an interesting note regarding deposit schedules. This applies to filers that became a semiweekly schedule depositor in 2022 under the $100,000 Next-Day Deposit Rule only because of the relief provided in Notice 2021-65 regarding the early termination of the employee retention credit for the fourth quarter of 2021. These filers may contact the IRS in order to convert back to monthly schedule depositors. They may continue to deposit in accordance with their status as monthly schedule depositors, but may receive a system-generated failure-to-deposit (FTD) penalty notice after they file their Form 941 for the first quarter of 2022. To request abatement of the FTD penalty and convert back to monthly schedule depositors, these filers must contact the IRS toll-free number on their FTD penalty notice.
Check out the Instructions for Form 941 (Rev. March 2022):
https://www.irs.gov/pub/irs-pdf/i941.pdf
And Notice 2021-65, 2021-51 I.R.B. 880, here:
https://www.irs.gov/irb/2021-51_IRB#NOT-2021-65
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