The Bloomberg BNA Payroll Library gives you reliable, up-to-date guidance and analysis in every area of payroll administration and compliance, and includes hundreds of interactive forms and links...
By Michael Trimarchi
About 25,000 employers were affected by an Internal Revenue Service computer programming error that produced notices with incorrect filing statuses for employment tax forms, an official said April 30.
The incorrect instructions informed the employers that they were to deposit and file taxes according to requirements of Form 944, Employer's Annual Federal Tax Return, instead of using the quarterly Form 941, Employer's Quarterly Federal Tax Return, senior IRS tax analyst Judy Davis said in a monthly teleconference with payroll professionals.
Because of the error, some employers may not have had time to file first-quarter employment tax returns as required by April 30 and payments for some others may not have been posted correctly, Davis said.
Penalties could result for employers unable to file on time, Davis said. The payments by some employers that were not posted properly because of the incorrect instructions were being resolved by the IRS and the payments were to be transferred to the proper accounts, she said.
An apology letter, 3007-C, was sent in late April to affected employers stating the correct filing status, Davis said. Employers were given the name and phone number of an IRS contact for more information.
Employers that were incorrectly penalized because they missed filing deadlines would receive assistance from the IRS, which would remove the penalty, Davis said. “Please note that you will be provided with your correct filing requirement, which would be a 941 in this case, and you should for the remainder of the year file on a quarterly basis, unless you hear something different from the IRS in writing,” she said.
To contact the reporter on this story: Michael Trimarchi in Washington at email@example.com.
All Bloomberg BNA treatises are available on standing order, which ensures you will always receive the most current edition of the book or supplement of the title you have ordered from Bloomberg BNA’s book division. As soon as a new supplement or edition is published (usually annually) for a title you’ve previously purchased and requested to be placed on standing order, we’ll ship it to you to review for 30 days without any obligation. During this period, you can either (a) honor the invoice and receive a 5% discount (in addition to any other discounts you may qualify for) off the then-current price of the update, plus shipping and handling or (b) return the book(s), in which case, your invoice will be cancelled upon receipt of the book(s). Call us for a prepaid UPS label for your return. It’s as simple and easy as that. Most importantly, standing orders mean you will never have to worry about the timeliness of the information you’re relying on. And, you may discontinue standing orders at any time by contacting us at 1.800.960.1220 or by sending an email to firstname.lastname@example.org.
Put me on standing order at a 5% discount off list price of all future updates, in addition to any other discounts I may quality for. (Returnable within 30 days.)
Notify me when updates are available (No standing order will be created).
This Bloomberg BNA report is available on standing order, which ensures you will all receive the latest edition. This report is updated annually and we will send you the latest edition once it has been published. By signing up for standing order you will never have to worry about the timeliness of the information you need. And, you may discontinue standing orders at any time by contacting us at 1.800.372.1033, option 5, or by sending us an email to email@example.com.
Put me on standing order
Notify me when new releases are available (no standing order will be created)