IRS 941 address mismatch

[kathyc2]

Is anyone else having clients contact them regarding letters from IRS mismatch of addresses on 941 to address on record? I've had 2 in the last 2 days and on one the only difference was one had the 4 digit zip extension and the other did not. The letter states that client needs to call IRS to correct address. The one yesterday actually called and said she was on hold over an hour. May be a clue how IRS resources are being used and why our calls are taking so long. Geez!

[JohnH]

Is anyone else having clients contact them regarding letters from IRS mismatch of addresses on 941 to address on record? I've had 2 in the last 2 days and on one the only difference was one had the 4 digit zip extension and the other did not. The letter states that client needs to call IRS to correct address. The one yesterday actually called and said she was on hold over an hour. May be a clue how IRS resources are being used and why our calls are taking so long. Geez!

Did they give a deadline for when the client needs to call? If not, I'd assume any time within the next year is fine; well after there has been sufficient time for 3 or 4 more 941's to be mailed in. Unless, of course a follow-up letter comes from IRS demanding a call.

[kathyc2]

I had the client e-mail me a copy of the actual letter, CP148B notice. The notice was mailed to the address on record. Text includes "we changed your mailing address" and "if the address change is correct, you don't need to do anything."
and "If you didn't authorize a change of address, contact us immediately..."

No where did it say what the address was changed to. So, client would not know if it was a simple thing like the zip extension or someone is actually trying to circumvent their mail.

With a little more research I found this is not something new, and it was probably just a fluke I suddenly got 2 notices. On IRS site is says notice will be sent with various items including "•Any address variation from the address of record for the business entity, e.g. interchanging "Street" for "St."

I'm not one to constantly criticize the IRS but this is just plain stupid.

[TAXNJ]

e-file

Maybe games are being played. Best way to avoid all the paper and mailing hassle is to e-file showing you have a record of filing and payment.

[Lion]

I e-file my clients' business income tax returns, and payroll companies e-file their payroll tax returns. Most received those letters. Two each, since they are sent to both the old and new addresses. Sometimes, I couldn't even tell what the difference was, maybe a space or hidden code or nothing at all. Clients panic when an IRS letter arrives. Then more panic again a couple days later when the second letter arrives! At least one called the IRS to change back to her old address, but she'll get another set of letters when the 3Q returns are e-filed. I've talked to a couple of the payroll companies, and we really think we're formatting the addresses exactly the same. What are you doing to calm your clients? What are you doing to prevent this all over again in another month?

[TAXNJ]

Machines

I e-file my clients' business income tax returns, and payroll companies e-file their payroll tax returns. Most received those letters. Two each, since they are sent to both the old and new addresses. Sometimes, I couldn't even tell what the difference was, maybe a space or hidden code or nothing at all. Clients panic when an IRS letter arrives. Then more panic again a couple days later when the second letter arrives! At least one called the IRS to change back to her old address, but she'll get another set of letters when the 3Q returns are e-filed. I've talked to a couple of the payroll companies, and we really thing we're formatting the addresses exactly the same. What are you doing to calm your clients? What are you doing to prevent this all over again in another month?

Maybe some of the IRS machines are outdated or not talking to,each other. As you know, Form 941 has EIN#; name and address. Why sent to another address is anyone's guess. Have not experienced this problem since e-filing but that may change based on this post comments.

[Lion]

It's not sent to another address. Both IRS letters -- to the old and new addresses -- end up in my clients' mailboxes. There is some minor formatting difference between an older 941 and the more recent 941, or the 1065/1120/1120S/1041 filed during tax season and the newer 941, that the IRS computer reads as a change of address. I've seen 5 digit zip vs. 9 digit zip, and I've seen punctuation differences, and I've seen no difference discernible to the naked eye. And, because I'm not the payroll company but my clients call me instead of their payroll companies, I try to calm them down. I'm unsure how to prevent it happening again when 3Q payroll taxes are filed. What have any of you done?

[kathyc2]

So, it turns out Congress is behind this. 2014 Consolidated Appropriations Act required the notices to be sent beginning Jan 2015. It came from some third party (payroll processors) putting their address on the 941's and then the company was not receiving notices of underpayments. Guess no one thought to ask if IRS computers are capable of determining a true address difference or just a difference of formatting. Nor did they think to report the new address on the form sent to the old address so company could determine if the "new" address was legit.

Lion, I have my business clients trained to not freak out when they receive something from IRS, so don't need to calm them.

[Lion]

I guess my biz clients freak less than my personal clients. But, there are still the artists, etc., who still freak when they see an IRS envelope in their mailbox, even more so when it's two!

[Burke]

I e-file my clients' business income tax returns, and payroll companies e-file their payroll tax returns. Most received those letters. Two each, since they are sent to both the old and new addresses. Sometimes, I couldn't even tell what the difference was, maybe a space or hidden code or nothing at all. Clients panic when an IRS letter arrives. Then more panic again a couple days later when the second letter arrives! At least one called the IRS to change back to her old address, but she'll get another set of letters when the 3Q returns are e-filed. I've talked to a couple of the payroll companies, and we really think we're formatting the addresses exactly the same. What are you doing to calm your clients? What are you doing to prevent this all over again in another month?

My clients are getting the same letters. Some say "thank you for your change of address" (when they didn't do anything.) I told them to forget it, that IRS was probably updating the zip+4 in their records, and it just generated an automatic letter because of the slight difference. IRS must have gotten hundreds of inquiries/complaints on this which could have been avoided.