When the IRS wants to correspond with your client, it generally uses as the address of record the one on the most recently filed and “properly processed return.” When IRS regs require that refunds or various notices be sent to the taxpayer’s last known address, this is the one the IRS uses.
A tax return generally is not considered properly processed until 45 days after filing—longer for returns filed during the tax filing season. In other words, notices sent to the old address during the return processing period are valid. The IRS automatically updates an address of record by using the U.S. Postal Service National Change of Address database.
A taxpayer who wants to change the address of record by other means must give the IRS a clear, concise notice, as described in the revenue procedure.
Best method: IRS Form 8822, Change of Address.
Also acceptable: A written statement of the new address, with full name, old address, SSN and individual TIN or EIN, signed by the taxpayer and mailed to an appropriate IRS address.
Electronic notification qualifies as proper notice—if given using a secure application on the IRS Web site. Warning: E-mail is not proper notification.
AIPB tip: For clients who have moved, it is critical that they not only inform the IRS, but that they document having done so, because the IRS considers its notices valid when sent to the “last known address”—even if the person moved and never received it. While the IRS searches for your client, penalties and interest mount and the right to appeal may lapse. [Rev. Proc. 2010-16; 2010-19 IRB 1]
Why risk falling behind? Try a no-risk membership and see what it can do for you. If not completely satisfied, cancel for a refund. Join now and you get:
- The General Ledger newsletter every month.
- Free use of our member telephone AnswerLine, where experienced accountants answer your everyday bookkeeping and payroll questions.
- Special professional discounts and other benefits.
Join now and you also get 3 special reports—free:
Free Report #1: “21 Key Bookkeeping Changes in Current Tax Laws.” Discover:
- Change #2: How to make sure your independent contractors withstand IRS challenges.
- Change #7: Easy new ways to verify employee name/SSN matches—and avoid penalties.
- Change #14: Court case decision allows tax deductions despite no written records.
- Change #18: Prepare for soaring SUI unemployment charges—and a higher SUI rate.
Plus . . . 17 other key changes you should know about.
Free Report #2: “Better Bookkeeping in 15 Minutes—the 25 Best Bookkeeping Tips of 2010.” Find out how to:
- Post returned checks
- Withhold from car allowances
- Know when to take, or refuse, a prompt-payment discount
- Record checks made out to cash
- Prove expenses if canceled checks are lost
- Correct W-2 errors the easy way
- Prepare internal income statements
- Set up successful collection calls
Plus: A special section on what is—and is not—overtime pay, and how to compute it.
Free Report #3: “The Bookkeeper’s Guide to Internal Controls.” Protect your company or client—and make sure you are not held personally liable.
Includes:
- How to protect yourself if you sign company checks
- Self-protection if you withhold taxes on paychecks
- How to make sure you are not liable for company loans or notes
- Steps you can take to avoid inadvertent disclosure
- And more
Offer your company or clients protection, including:
- 9 ways to prevent bad-check losses
- 5 ways to protect company bank accounts and other cash
- 12 policies that prevent fraud
- 15 signs that employees are stealing
- And more
Enjoy member benefits, such as:
- Free use of our telephone Member AnswerLine, where experienced accountants answer your everyday bookkeeping and payroll questions
- Free identity theft services if your identity is stolen
- Discounts of up to 26% on FedEx shipping services
- Discounts on continuing professional education
- Discounts on professional liability insurance
What a useful info !!
Yes, it is!! Thanks for posting it!! This website is very informative for me!!:)