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May 24, 2016

IRS Apologizes for Programming Error for April 15th Causing Failure to Deposit Notices

Flex-Pay received the update below from our IRS contacts regarding a recent delay in the posting of payroll tax filings for some monthly depositors. With the April 15th holiday in Washington, DC, April 18th was allowed as the appropriate date to receive deposits. Our clients payments were made on time; with this information from the IRS, we want our clients to be aware a notice may still be sent to them. 

If you receive any tax notices, please forward them to your Flex-Pay Payroll Specialist for our Tax Department to confirm your tax payments are posted correctly to your account with the IRS.

“Some monthly deposits of payroll taxes are being treated as late in error.

Due to the observed holiday on April 15, 2016 (Emancipation Day in Washington, DC), deposits were not due until April 18, 2016. IRS recently identified a programming error causing deposits made after April 15, 2016, to be considered late, even though they were made timely by April 18, 2016. In some instances, taxpayers were assessed failure-to-deposit penalties as a result. 

IRS 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. We apologize for any inconvenience this may cause.”