Alston & Bird Tax Blog

Year-End Sellers Take Note: Planning Considerations with CARES Act Deferred Payroll Taxes

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The end of the year can bring new opportunities for tax planning. Our Federal Tax Group explains how 2021 year-end or 2022 sellers in M&A transactions can consider accelerating deductions for payroll taxes deferred under the CARES Act.

  • The CARES Act does not prohibit early payments of deferred payroll taxes
  • Sellers may benefit from paying the deferred payroll tax liability before closing and accelerating the deductions
  • Sellers should consider the overall tax impact of the additional deductions

Read the full advisory here.

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