It’s hard to get everything done before a holiday or vacation, right? Inevitably we forget something – leave medicine on the counter or neglect to reschedule an appointment for when we’re out of town. Well the IRS forgets things too – this year they forgot to enter Memorial Day as a holiday for the purpose of calculating due dates for federal tax deposits (FTD). This means that some deposits were erroneously counted as late.
The IRS’s website reports that “As a result of the holiday observance, the next-day deposits that would have been due on Monday, May 30, were instead due on Tuesday, May 31, and the semi-weekly deposits that would have been due on Wednesday, June 1, 2016, were instead due on Thursday, June 2, 2016.” Oops.
Luckily the IRS has recognized its error and corrected it, according to IRS.gov:
• Taxpayers who received a notice (CP161) of a failure-to-deposit penalty as a result of this error will receive a new notice of adjustment (CP210/220) stating the account was corrected and they do not owe a penalty.
• Taxpayers who received a notice (CP276B) providing that their deposit was made incorrectly but that IRS waived the penalty will not receive any follow-up correspondence.
So don’t worry! For more information, check out the IRS’s website: https://www.irs.gov/businesses/small-businesses-self-employed/memorial-day-ftd-penalty-error