941 deposits

[ChEAr$]

Taxpayer has made monthly deposits since inception of the corporation since about 1993. Suddenly they get a letter asserting penalties for not making bi weekly deposits starting second quarter of this year. It seems that the look back rule changed the frequency early this year.

IRS used to send out a letter detailing the change. Did IRS stop this practice? Taxpayer avers no such letter received.

[Golden Rocket]

Burden of Proof?

ChEAr$ how can IRS possibly place burden of proof that they notified this taxpayer of his bi-weekly requirements?

If they didn't send it (quite likely) taxpayer wouldn't have proof to go to war with.

Like that song "Since the phone still ain't ringin', I assume it still ain't you..."

[luke]

sounds like a crybaby letter to IRS is in order - "Hey we're good guys, have always paid on time, didnt get a letter, promise to pay on time from now on...."

[Gretel]

Last year I had a client whose deposit frequency changed to by-weekly. IRS automatically waived penalties for late payments for a number of months. They stated this automatic waiver in their letter. Unfortunately this client moved on and I do not have a copy of this letter.

I would call them and ask for this.

[S T]

Just received a letter

On a new client - we just received a CP-136 notice for the upcoming tax period of 2012, The notice provided the Quarter Ending and Liability for that Quarter ) encompassed 9/30/2010 - 6/30/2011 period.

Based on the current notice - "In October, 2011 we determined your deposit requirements for 2012 for the following four-quarter lookback period beginning July 1, 2010 and ending June 30, 2011" "deposit taxes under the monthly deposit schedule becasue your total tax liablity for the four quarters totaled $ 50,000 or less"

IRS include Notice 931 with the lookback rules. http://www.irs.gov/pub/irs-pdf/n931.pdf Monthly deposits only if quarters are $ 50,000 or less - semi weekly for quarters of $ 50,000 or more.

I would guess your client probably received a similar notice and just thought it was not important.

You can probably obtain a one-time waiver of penalties if the taxpayer has been compliant in the deposits in the past.

Sandy