Have you received an IRS notice dated “February 15, 2021” indicating “Changes to your December 31, 2020 Form 940 – Adjusted Amount Due”?

We’ve recently learned of an error where 940 timely deposits made to the IRS in January for the 2020 period were not properly credited to employer accounts. IRS sent an erroneous past due notice to taxpayers — see the redacted example below.

Due to the unprecedented number of changes in payroll tax laws, staffing challenges at the IRS, and an increase in unprocessed amended tax forms due to the COVID-19 pandemic, the IRS is extremely backlogged. As a result, clients are seeing a larger than usual number of tax notices – many of which may be in error.

If you receive an IRS notice regarding payroll taxes for this or any other reason, please forward it to your Asure payroll specialist for our prompt attention.