IRS Announces Erroneous Failure-to-Deposit Penalties Will Be Resolved

This spring’s tax season was extended to April 18 because of a holiday (Emancipation Day) in the District of Columbia. While many of us believed that a few extra days to file tax returns past the normal April 15 annual deadline was a good thing, it appears that the Internal Revenue Service (IRS) has run into some difficulties related to the change in date.

The IRS announced that some payroll tax deposits made after April 15, but before April 19, were treated as being late because of a programming error within the IRS’ system.  The IRS’ processing system did not recognize that the due date for a timely deposit had been changed to April 18. As a result, some depositors were assessed failure-to-deposit penalties, which apply if a taxpayer does not deposit tax in the correct amount or on time.

Affected taxpayers do not need to contact the IRS or take any action at this time. The IRS is taking steps to correct these errant penalties, and any taxpayers impacted will be contacted when the penalty assessment issue is resolved.    

Contact us if you have qiuestions regarding any failure-to-deposit issues and visit the Our Thoughts On blog for timely tax articles

You’ve heard our thoughts… We’d like to hear yours

The Schneider Downs Our Thoughts On blog exists to create a dialogue on issues that are important to organizations and individuals. While we enjoy sharing our ideas and insights, we’re especially interested in what you may have to say. If you have a question or a comment about this article – or any article from the Our Thoughts On blog – we hope you’ll share it with us. After all, a dialogue is an exchange of ideas, and we’d like to hear from you. Email us at [email protected].

Material discussed is meant for informational purposes only, and it is not to be construed as investment, tax, or legal advice. Please note that individual situations can vary. Therefore, this information should be relied upon when coordinated with individual professional advice.

© 2024 Schneider Downs. All rights-reserved. All content on this site is property of Schneider Downs unless otherwise noted and should not be used without written permission.

our thoughts on
Tax, Tax Policy BY Kirk Mitchell
Summary of President Biden’s 2025 Revenue Proposals Released in Treasury’s Greenbook
The Importance of Certified Business Valuation Professionals
Tax, Tax Impact BY Jared Sofranko
IRS Tax-Exempt and Governmental Entity New Compliance Programs
Tax BY Brianna Lundy
Employee Retention Credit: IRS’s Voluntary Disclosure Program Expiring on March 22, 2024
Pillar Two is Here; Is Your Company Ready?
Not-for-Profit, Tax BY Sarah Piot
Not-For-Profit Tax Credit Opportunities Included in the Inflation Reduction Act
Register to receive our weekly newsletter with our most recent columns and insights.
Have a question? Ask us!

We’d love to hear from you. Drop us a note, and we’ll respond to you as quickly as possible.

Ask us
contact us
Pittsburgh

This site uses cookies to ensure that we give you the best user experience. Cookies assist in navigation, analyzing traffic and in our marketing efforts as described in our Privacy Policy.

×