Business address as a P O Box??

[Bonnie]

I had a phone call from a customer who has a cleaning business (Sch C) and he issues 1099's. He works from his home so his home address would be on the 1099's he issues. His concern is he doesn't want his workers to know where he lives and he wants to change the business address to a P O Box. I know the IRS really don't like PO Box addresses and want a physical address. How would you recommend he handle this.

[Roland Slugg]

I know the IRS really don't like PO Box addresses.

That isn't true at all. In fact the IRS uses P.O. boxes itself for all tax returns and correspondence. I have several clients who use a P.O. box, and I used one myself for many years when I was in California.

How would you recommend he handle this.

I'd suggest he get a P.O. box at his nearest post office.

P.O. boxes have several advantages: Get your mail earlier in the day ... better security ... no need to ask a neighbor to collect your mail if you go away for a few days.

The Postal Service is the only "business" I know that will deliver its product to you for free, but if you want to go there and pick it up, well, that's going to cost you!

[Rapid Robert]

His concern is he doesn't want his workers to know where he lives and he wants to change the business address to a P O Box. I know the IRS really don't like PO Box addresses and want a physical address.

I wouldn't hesitate to recommend he use a PO Box. I have a client who always files his 1040 with PO Box. I myself use a commercial mailbox (UPS Store) on all my business tax-related documents, including 1099-MISC.

It's true that IRS says in Form 8822 instructions, "P.O. Box - Enter your box number instead of your street address only if your post office does not deliver mail to your street address." But I don't think they have authority to enforce that. It's just like they might prefer sole props to use an SSN on 1099-MISC forms, but an EIN is acceptable.

Also, the owner should know that if he owns his residence, it is probably pretty easy to figure out his home address using the internet. He might better spend time trying to make sure none of his workers would ever feel the need to approach him at home uninvited.

[JohnH]

I agree with Roland Robert. IRS has preferences for a lot of things, but at the end of the day the taxpayer can do what works best for their business unless there is a specific prohibition against it. I've used a PO box for my business address for 30+ years, and much of the time for my personal tax returns. Never had a problem or a question about it.

[taxea]

IRS rule not an option
You can only use a P.O box:
If your post office doesn't deliver mail to your street address and you have a P.O. box, enter your P.O. box number on the line for your present home address instead of your street address.

[JohnH]

How much is the penalty for using a PO Box?
Or is this just another "rule" used to coerce the gullible?

[taxea]

No it is so the IRS can find the person if they need to. Their theory is no one lives in or conducts business out of a PO Box, even a large boxk is just too small.

[JohnH]

I don't work for the IRS so I have no interest in doing their job for them. They have plenty of resources and ways to locate people. The Post Office even requires a physical address when you open a PO Box, so this info is available to anyone with a genuine need to know and the authority to ask.

As for the business reasons for having a PO box, it it infinitely safer than a physical address when a business is receiving checks and other important documents (such as tax notices) via the mail. Many businesses rent their facilities, and when they move locations it becomes a headache to get all the address changes done. The Post Office has very short time frames for forwarding mail, plus the forwarding system often fails to forward mail even within the time limits. As for PO Box size, most modern PO facilities have overflow boxes that they use to hold large items and they put a single-use key in the PO Box to give the box holder access to the overflow box. So the assertion that there's no business reason to have a PO Box is just simply wrong because it is so simplistic, short-sighted, and naive.

[taxea]

the residence/ business street address is put on the tax return, then you include a mailing address if you want the correspondence to go to a PO Box.

[Snaggletooth]

Requirements to go both directions

Over the years of my lifetime I have become increasingly disgusted with governments creating requirements for its citizenry but exempting themselves from same.

If IRS gets to the point where a street address is required for all taxpayers, they should have to furnish a street address for their own offices.