An update in the IRS electronic filing process may have resulted in an unexpected change of address notification. Recently the Internal Revenue Service made upgrades to their Electronic Filing System which processes Quarterly Payroll Tax Returns, specifically, form 941. These changes went into effect for the Second Quarter 2015 Tax Filing which was due July 31, 2015.

 

Due to an error in the file specification, address information may have been updated on taxpayer accounts inadvertently. The issue stems from the omission of address information that normally would be identified on a secondary address lines and the in care of (%) line. Taxpayers who utilize a second address line for information such as Suite or Room number, or the in care of line, may have had their company address information updated due to this issue.

 

As a result, two Change of Address notices were issued for each impacted company: one to the previous company contact, and one to the new company contact. Although we have been in contact with the IRS in an attempt to suppress any notices that have not yet been issued, the agency is unable to assist with our request, because these notices are mandated by law (Public Law 113-76), and must be issued each time an address is changed. IRS is aware that this issue has occurred and has issued the following alert through their Stakeholder Liaison Office.

 

IRS message regarding incorrect address change:
The IRS is aware that a large number of payroll company clients are receiving notices CP 148A and 148B (Dual Notice of Address Change). We have taken actions to work with payroll companies to correct their client’s accounts. To avoid additional notices from being generated due to an incorrect address change, the complete mailing address (apartment numbers, suite numbers, box numbers, etc.) should be included in address field one only. The second address field, should not be used to enter address information. This may require the use of standard abbreviations of lengthy address information over thirty-five characters in order to provide all pertinent information necessary for accurate mail delivery. The IRS is working on a systemic solution to reject returns upfront when data is entered in the second address field or street address line 2 field. This solution should be in place prior to the third quarter filing period which starts on October 1, 2015.

 

We have received instructions from the IRS to advise taxpayers to disregard the notice if no Address information is missing in the notice of new Address. If any address information is missing, the address information will be updated when the IRS corrects the problem prior to the third quarter filing period starting on October 1, 2015.

 

For additional information on IRS Address notification regulations please visit:

http://www.irs.gov/pub/foia/ig/spder/WI-21-0115-0228[1].pdf

 

The Payroll Industry has expressed concerns to our Business Partners at the IRS and are working on additional safeguards to ensure filings are processed accurately and securely. As stated above IRS is already implementing additional safeguards to prevent further address problems in the future, however, As IRS works to correct the issue, you may receive additional change of address notices as the data is corrected. As a result of the changes being made to correct the address, taxpayers may receive additional notices due to abbreviations being added to fit address data previously contained on 2 address lines. Please disregard these notices provided the correct address is listed on the notice.

 

Thank you for choosing Paylocity as your Payroll Tax partner. Should you have any questions please contact your Paylocity Account Manager.

 

This information is provided as a courtesy, may change and is not intended as legal or tax guidance. Employers with questions or concerns outside the scope of a Payroll Service Provider are encouraged to seek the advice of a qualified CPA, Tax Attorney or Advisor.