10 May 2016 IRS incorrectly assessed late deposit penalties in connection with Emancipation Day holiday The IRS announced that due to a programming error, deposits made on April 18, 2016, rather than April 15, 2016, were considered late and failure to deposit penalties were assessed. This error affected some monthly and daily deposits of payroll taxes, the IRS said. Emancipation Day was observed as a federal holiday in Washington DC on April 15, 2016. Accordingly, federal payroll deposits were not required to be made until the next business day, or April 18, 2016. The programming error resulted in treating some deposits made on April 18 as late and automatically assessed failure to deposit penalties. The IRS is working to resolve the issue and correct the erroneous penalty assessments in the near future. The IRS states that no taxpayer action is required at this time and that those affected will receive correspondence when the issue is resolved. Employers that correctly made federal payroll tax deposits on April 18, 2016 should carefully review their IRS tax accounts to confirm that any erroneous late deposit penalties are removed. Businesses that continue to see erroneous late deposit penalties on their accounts may contact Debbie Spyker at deborah.spyker@ey.com or Debby Salam at Debera.salam@ey.com for further assistance.
Document ID: 2016-0838 | ||||||||||||||||||||
