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Just wondering if anyone else has been seeing a large number of IRS notices regarding unfiled 941 forms. We've had 8 or 9 clients in the last 2 weeks receive these. All are clients who make monthly deposits and who are very good about mailing these in. I'm beginning to think that IRS isn't opening their mail.

The sorting center in Dayton is being closed. Sorting will all go 90 mile east to Columbus. Streamlining at its finest. I have heard from people inside the local post office that slow downs, not processing bags of mail and other things are being committed as the workers protest the closing. I have this on first person information. It is frustrating because our clients want to blame us for things not being delivered timely or at all.

To qualify for the insolvency exemption. the person must have been insolvent on the DAY BEFORE the debt was cancelled. This is a very key matter. The date of the debt cancellation will be on the 1099-C. Nothing that happens before or after that date has any effect. Be careful not to get drawn into an attempt to avoid paying tax that is owed.

​Change the 10 to a 6 and I will agree with you.

I gotta go with Judy on this one. While it will be a major pain to do this it is the only proper way and do hope the folks at the IRS who are processing the amended or correct 941's (used to be form 941C) that they can add and understand your explanations. BTW, do as an IRS agent advised me, keep your explanations simple so a 10th grader can read them. Took me three years to convince the IRS one of my clients had over paid his payroll tax for the first quarter of the tax year and the overpayment was applied to the second quarter of the same tax year (correct way to do this according to the IRS regs at the time) which started the snowball rapidly moving down hill. Office audits, penalties, penalty abatements and even visits from IRS agents and all a bunch of crap but finally settled when someone inside the IRS took the time to go Oh, I see what happened here. Good luck and charge accordingly.

Powerful and heart wrenching. Thank you KC for posting. I am a lucky one. My son served in the military and came home ok.

​I agree with you, and with restaurants that have a fairly high rate of turnover, some of the affected people may no longer be employed there. Amended returns and corrected W-2s is the way to proceed.