IRS erroneously treats some payroll deposits as being late

Some monthly and daily deposits of payroll taxes are being treated as late in error by 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. The 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. (SBSE Payroll communication, May 10, 2016.)

Visit our News Library to read more news stories.