IRS Continues to Have Issues With Payroll Tax Deposit Due Dates
For some reason the IRS can not seem to get their computers to understand that the United States actually follows certain holidays during the year. All payroll tax deposits have certain due dates and if these due dates fall on a holiday, the due date automatically gets rolled forward to the next business day. However, the IRS computers sometimes gets confused and still thinks the due date is on the holiday and sends out penalty letters.
For the most recent Memorial Day holiday, the IRS computers struck again and sent out notices indicating the taxpayer was late with their payroll tax deposit and they needed to pay a penalty. However, after two full months, the IRS has just posted a notice indicating that the taxpayers do not owe the penalty and that the IRS will take care of it. Here is a link to the notice.
I am not sure how many times this has happened in the last couple of years, but I know that this is not the first time. If you have gotten this notice from the IRS, make sure you do not pay the penalty. You will likely get a refund from the IRS, but as usual it may take several months to get your money back.
Paul Neiffer is a certified public accountant and business advisor specializing in income taxation, accounting services, and succession planning for farmers and agribusiness processors. Paul is a principal with CliftonLarsonAllen in Walla Walla, Washington, as well as a regular speaker at national conferences and contributor at agweb.com. Raised on a farm in central Washington, he has been immersed in the ag industry his entire life, including the last 30 years professionally. Paul and his wife purchase an 180 acre ranch in 2016 and enjoy keeping it full of animals.
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