IRS screwing up addresses. Heads up

[PATAX]

A couple of days ago business client texted me correspondence from the Internal Revenue Service where they screwed up and change the mailing address. Yesterday another business client emailed to me the same thing. The letter says we updated your mailing address in our records because the address entered on a tax return was different from the one in our records. But this is absolutely not true, the addresses were not changed by us anywhere. They erroneously changed the following on both: Instead of any "Anytown, PA 12345" they changed it to: "West Anytown, PA 12345".

[IRonMaN]

That isn't new news.  The have been doing that for a few years now.  I have received a few of those little letters personally (along with a few clients), but it's been a little bit since the last one showed up. They would make a microscopic change to the address and alert me to that fact.

[PATAX]

Yeah you're right in the past they did things like change Road to Rd and then claim it was an address change. But this one is a little bit different, they added something to the name of the town that isn't there for clients. Unbelievable.

[IRonMaN]

They are updating the addresses like that to throw Santa Claus off.  The IRS doesn't want anyone to get anything other than a lump of coal for Christmas.

[rbynaker · Accepted solution]

Sounds like a zip code database issue.

Many zip codes have multiple city names.  Plug the zip code into the USPS database and see if both names come up:

https://tools.usps.com/zip-code-lookup.htm?citybyzipcode

I'm guessing either the tax software or the IRS database is "correcting" the city name based on automatically picking one name from the list.  See 22102 as a good example of one zip code with four names.

Rick

[PATAX]

Thanks Rick. I think you are right. The recommended city name on that website is the correct one, but under other names the incorrect one appears. Why the IRS decided now to use the incorrect one, after using the correct one for all these years, is beyond me. It is their responsibility to use the correct name that is listed on the tax returns. Between them, Pennsylvania, and local, it appears that I am being swamped with nonsense notices. I can remember years ago, I could go a whole year without any type of notice like this for all clients. It's getting to be a big joke, and all these politicians claim that they are for small businesses.

[IRonMaN]

It's just another case of computers doing all of the thinking instead of a human being looking at things to see if it makes sense.  Artificial intelligence is taking over -------------- and I am referring to the politicians now.  We elect people that are dumber than a box of rocks, but they get up on their soap box and ramble on to pretend that they are intelligent.

[rbynaker]

We're on a clear path to the future depicted in the movie Idiocracy.

Posted on another list today: VA computers are holding PTET refunds for businesses who have missing VA-5/VA-6 returns (payroll withholding) dating back at least as far as 2004.  But I'm sure all VA small businesses are super organized and will be able to locate that information and get those missing returns filed in a matter of minutes.

[BobKamman]

@IRonMaN  Au contraire, the politicians are getting smarter.  It requires much more intelligence to be a demagogue.  Just not as much morality and ethics.  

[IRonMaN]

It is my understanding that you have to take an ethics test before you can run for public office.  If you flunk the test, you are in!

[PATAX]

Since all of these federal, state, and local taxing entities charge penalties to businesses and individuals when they screw up, then I think it's high time that they start paying penalties to the aforementioned taxpayers when they screw up. What's good for the goose is good for the gander.🦢🦤

[BobKamman]

@PATAX  IRS didn't pay any penalties in this case but at least they refunded the ones they assessed because they screwed up when announcing  them. 

"When the Internal Revenue Service levied tax penalties against Mann Construction and its owners under one of its regulations, technically a Notice, the taxpayers replied that the IRS violated the Administrative Procedure Act. In a prior opinion, we held that the Notice violated the APA. The IRS voluntarily refunded the penalties to the plaintiffs and agreed not to apply the Notice to the taxpayers in the future. Even so, the district court on remand proceeded to invalidate the regulation nationwide. Because the dispute is moot, we vacate the district court's decision."

https://caselaw.findlaw.com/court/us-6th-circuit/115504980.html 

[garman22]

I also received same letter stating a tax return or form 8822 shows different address. 

I tried calling but was disconnected several times. As of now its on the wait and see method. 

PITA!!! 

[PATAX]

That's why I use the four digit ZIP code extension on everything that I can. The IRS included that four digit ZIP code extension in their letters to my clients, and that will usually ensure that the post office delivers it to the right address in my aforementioned circumstances.