The IRS has alerted taxpayers who made employment tax deposits on May 31, 2016, or semi-weekly employment tax deposits on June 2, 2016, that they may receive notices that their deposits were late. These notices, generally titled, Your Federal Tax Deposit Wasn’t Submitted Correctly, were issued in error because the IRS system did not recognize the 2016 Memorial Day holiday.
In the bottom section of the notice, it will list the Date Due as May 30 or June 1, 2016. However, due to the observed holiday on May 30, 2016, employment tax deposits were not due until May 31, 2016 or June 2, 2016. The IRS recently identified a programming error causing these deposits to be considered late, even though they were made in timely manner by May 31 and June 2, 2016. In some instances, taxpayers were assessed failure to deposit penalties as a result.
The agency is working to resolve the issue and correct the erroneous penalty assessments in the near future. No taxpayer action is required at this time. Those affected will receive correspondence when the issue is resolved as follows:
- 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) that their deposit was made incorrectly, but that IRS waived the penalty, will not receive any follow-up correspondence.
Please contact Bob Grossman or Rick Dynoske at 412-338-9300 if you require any assistance or have any questions on this matter.
