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IRS Second Quarter 2016 Penalty Notices Sent in Error

Dear Valued Client:  

Many taxpayers who made tax payments that were due on Tuesday, May 31, or Thursday, June 2, 2016, were incorrectly sent notices from the IRS that their deposits were late for second quarter 2016.

Due to a programming error, IRS systems did not recognize the Memorial Day holiday observed on May 30, 2016. As a result of the holiday observance, the federal tax deposits that would have been due on Monday, May 30, and Wednesday, June 1, 2016, were instead due on Tuesday, May 31, and Thursday, June 2, 2016. 

If you receive one of these notices from the IRS, please be assured that no taxpayer action is required on your part. IRS systems will be corrected, and affected taxpayer accounts will be updated.

• Taxpayers who receive a notice (CP161) of a failure-to-deposit penalty as a result of this error will receive follow-up correspondence indicating they do not owe a penalty. If the follow-up notice shows a balance due, please forward the notice to your customer service representative immediately.
• Taxpayers who receive a notice (CP276B) stating that their deposit was made incorrectly, but that the IRS waived the penalty, will not receive any follow-up correspondence.

Sincerely,

The Specialists at Advantage

Employee Guide

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Dear Valued Client:

We want to let you know about Texas Labor Code §104.004(a) and HB 2360 requiring Texas employers to notify all of their employees of the Federal Earned Income Tax Credit (EITC) general eligibility requirements, no later than March 1, 2016.

Employers can use IRS Notice 797 or a written statement with the same wording as IRS Notice 797 when notifying employees:

• in person;
• electronically at the employee’s last known email address;
• through a flyer included in writing or electronically as a payroll stuffer; or
• by mailing the information to the employee at the employee’s last known address by U.S. first class mail.

For more information refer to http://www.twc.state.tx.us/ui/tax/eitc_notice.pdf and

Please contact your customer service representative with any questions 

Sincerely,

The Specialists at Advantage


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