IRS Corrects Erroneous Failure-to-deposit Penalties
Posted by Kim Chen on June 9th, 2016
On 5/10/16, the IRS announced that some taxpayers that made payroll tax deposits by April 18, but after April 15 (which was a legal holiday in the District of Columbia), were erroneously assessed failure-to-deposit penalties. The IRS has resolved this error and will update taxpayer accounts accordingly. Taxpayers, who received a notice (CP161) of a failure-to-deposit penalty, will receive follow-up correspondence indicating they do not owe a penalty. Taxpayers, who received a notice (CP276B) indicating their deposit was made incorrectly but that the IRS waived the penalty, will not receive any follow-up correspondence. IRS webpage, “Emancipation Day FTDPenalty Error” (updated 5/20/16).
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