The Internal Revenue Service (IRS) recently issued an alert to payroll processors advising them that it sent out erroneous Failure to Deposit Notices for the April 2016 deadline.
Following is the correspondence from the IRS:
Due to the observed holiday on April 15, 2016, (Washington DC Emancipation Day), 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.
Savers Admin submitted all client payroll tax deposits in advance of the deadline, but we are alerting our payroll clients of this situation in the event they receive a late notice from the IRS due to this programming error.
The late notice will indicate that the employer’s federal tax deposit wasn’t submitted in a timely manner. It will show a date due of 04/15/2016, and a date received of 04/18/2016.
Savers Admin payroll clients who receive a notice of this nature are asked to forward a copy of the notice to your payroll processor so that we can follow up with the IRS to ensure that there are no problems with your April 2016 payroll tax deposit.