An IRS payroll tax error resulted in late notices for some employers

(comments: 0)

Did you recently receive a late notice from the IRS? 

It was likely issued in error. The IRS has alerted employers that many payroll tax deposits made on May 31 (next day- depositors) and June 2 (semiweekly depositors) were incorrectly sent late notices even though the deposits were actually made on time.

This was caused by a programming error: IRS systems did not recognize changes in deposit due dates created by the Memorial Day holiday. The observance of the holiday moved the May 30 (next-day) deadline to May 31 and the June 1 (semiweekly) deadline to June 2.

Failure-to-Deposit Penalty Corrected
Employers that receive a notice (CP161) of a failure-to-deposit penalty will receive a new notice of adjustment (CP210/220) stating that the account was corrected and that they do not owe the penalty.

Notice of Incorrect Deposit, Penalty Waived
Employers that receive a CP276B notice stating that their deposit was made incorrectly but that the IRS waived the penalty. They will not receive another notice.

The IRS has announced that no employer action is required, and that their systems have been corrected and impacted accounts will be updated.

Please don't hesitate to contact the CheckWriters Tax Department for questions or concerns regarding this issue.

Click here for the IRS statement >>

Go back

Subscribe to Our Blog