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IRS Sends Erroneous Payroll Notices

08.15.2016

Due to a programming error, many taxpayers who made their next-day employment tax deposits on Tuesday, May 31, or semi-weekly employment tax deposits on Thursday, June 2, 2016, were incorrectly sent notices that their deposits were late.

Changes in deposit due dates created by the Memorial Day observance on May 30, 2016, were not recognized by IRS systems. As a result of the holiday observance, the next-day deposits that would have been due on Monday, May 30, were instead due on Tuesday, May 31, and the semi-weekly deposits that would have been due on Wednesday, June 1, 2016, were instead due on Thursday, June 2, 2016.

No taxpayer action is required. IRS systems have been corrected and impacted taxpayer accounts will be updated. In addition:

  • Taxpayers who received a notice (CP161) of a failure-to-deposit penalty as a result of this error will receive a new notice of adjustment (CP210/220) stating the account was corrected and they do not owe a penalty.
  • Taxpayers who received a notice (CP276B) providing that their deposit was made incorrectly but that IRS waived the penalty will not receive any follow-up correspondence.

Roy H. Kramer, CPA/PFS, CDFA, CDS, NSSAIf you have any questions about this notice, please contact your tax advisor or Roy Kramer, Partner, Tax Services, at 314.983.1265 or rkramer@bswllc.com.

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