IMRS Addresses Significant Issues Regarding IRS Policies, Practices and Issues
The Issue Management Resolution System (IMRS) was designed to capture, develop, and respond to stakeholder issues and to identify nationwide trends in the reporting, filing, and paying requirements that may indicate a need to change IRS processes or procedures.
HIRE Credit Misapplication Led To Erroneous Notices
A problem was identified in the way the 2010 first quarter HIRE credit (line 12e) was applied when computing the Failure to Deposit (FTD) penalty on 2010 second quarter Forms 941. As a result, erroneous CP276B notices were issued.
IRS Response To Incorrect Penalty Notices
The IRS response to this issue is:
Incorrect CP276B and CP207 notices were generated for Form 941 for the tax period ending [June] 30, 2010. There was a programming problem and the HIRE credit arising from the first quarter and claimed on second quarter Forms 941 was not used in the systemic FTD penalty calculation. As a result, the computer charged incorrect penalties in some cases and generated incorrect CP 276B systemic waiver notices in others. A recovery was run to reverse the incorrectly assessed FTD penalties. No corrective action is necessary for the incorrect CP 276B notices since no penalty was charged. This situation will not be considered for future determinations of whether First Time Abatement relief will be granted.
Contact Vision Payroll for Further Information
Contact Vision Payroll for further information regarding the incorrectly issued penalty notices.