Earlier this month, it came to our attention that the IRS had issued erroneous notices to hundreds of thousands of taxpayers indicating that their tax payments were paid late. The notice stated “Your Federal Tax Deposit wasn’t submitted correctly,” claiming it was due on June 1, 2016 when in fact the IRS schedule indicated their due date should’ve be June 2, 2016. While this did not impact all of our clients, it did impact some.
PAYDAY immediately contacted the IRS and they stated that they were aware of the issue and had notified all of their representatives of the issue as well. On August 4th, the IRS issued a statement on their website regarding the error, which can be viewed on their website. According to the IRS, all taxpayers affected would receive another statement from them in the following three to four weeks advising that the issue has been resolved. While the majority of our clients that received incorrect penalty and interest have had their accounts restored to a zero balance, we have found some accounts are still outstanding. The IRS indicated yesterday that while most have been resolved, it could still take 6-8 weeks for 100% of the accounts to be restored. Payday will continue to monitor this issue.
PAYDAY is here for you
At PAYDAY, we take care of all the details so you don’t have to. In the event that you receive an IRS notice, please send it to firstname.lastname@example.org. We will respond acknowledging receipt and keep you up to date on the case. Check out our What to do when your company gets a tax notice post to learn more about what you can do if you’re ever in this situation.