SE tax deferral payment

[jrfjrcpa]

Has a form or method been established for the payment of the two halves of the deferred se tax that may have been claimed on the 2020 return that will be due by 12/31/21 and 12/31/22?

[qbteachmt · Accepted solution]

Everything I've seen states the IRS will "send out bills."

[LenaF]

My client just rec'd a demand/levy notice for deferred SE tax claim on 2020 tax.  I thought we have till end of 2021 to pay in full?  

[qbteachmt]

Half is due by the end of 2021. The other half is due by the end of 2022.

Tell us about this notice. Issued by SS or IRS? Does it show a due date? Does it list the amount due now, in full, or both?

This is the first post I've seen for it.

Your client would not have deferred their entire amount.

[abctax55]

@LenaF 

What amount shows on Sch 3, line 12e?  Click on the green link on the left side to get to the worksheet & follow the numbers (IF you are really using Lacerte).

Michele is correct; not ALL of the SE tax could be deferred.  Only 1/2 of SS (not Medicare) and then restricted by any existing overpayments

Also look at page two of Sch SE.

[qbteachmt]

If you sign up for e-newsletters, you would get this type of thing by email; this came today:

COVID Tax Tip 2021-96: How self-employed individuals and household employers repay deferred Social Security tax

https://www.irs.gov/newsroom/how-self-employed-individuals-and-household-employers-repay-deferred-so...

[LenaF]

Sorry for late response.  Just got back in town.

So... First notice was dated June 7th with full payment due date of June 28th.  And, he rec'd a demand to levy shortly after (July 2nd).  His total SE  $10,945, and deferred $3030.   it clearly stated on the 1040, total deferred amount $3030 and 1/2 $1,515 to pay by 12/31/21 and final 1/2 $1,515 by 12/31/22.  

I tried to call IRS numerous times but unable to connect with anyone.  I recommended my client to just pay it to avoid the additional hassle.