The IRS has released information regarding the Memorial Day FTD Penalty Error. The text of the message is below:
Many taxpayers who made their next-day employment tax deposits on Tuesday, May 31, or semi-weekly employment tax deposits on Thursday, June 2, 2016, were incorrectly sent notices that their deposits were late.
Due to a programming error, IRS systems did not recognize changes in deposit due dates created by the Memorial Day holiday observed on May 30, 2016. As a result of the holiday observance, the next-day deposits that would have been due on Monday, May 30, were instead due on Tuesday, May 31, and the semi-weekly deposits that would have been due on Wednesday, June 1, 2016, were instead due on Thursday, June 2, 2016.
We apologize for any inconvenience, and no taxpayer action is required. IRS systems have been corrected and impacted taxpayer accounts will be updated.
- Taxpayers who received a notice (CP161) of a failure-to-deposit penalty as a result of this error will receive a new notice of adjustment (CP210/220) stating the account was corrected and they do not owe a penalty.
- Taxpayers who received a notice (CP276B) providing that their deposit was made incorrectly but that IRS waived the penalty will not receive any follow-up correspondence.
If you have any questions on a notice you received, please contact Vision Payroll.