August 5, 2019
Delaware employers have been receiving IRS notices over the last 6+ months claiming they have unpaid payroll taxes from 2016. Some show assessments in excess of $10,000, including penalties and interest. If you have received one of these notices and have not already contacted us, please do so now. DO NOT PAY THE ASSESSMENT.
The issue stems from a failed file transmission between the Delaware Department of Labor's Division of Unemployment Insurance (DDUI) and the IRS. DDUI has resubmitted the necessary information, and is providing certifications of employer accounts. We have also responded (sometimes repeatedly) to the notices on behalf of clients, but to our knowledge the IRS has yet to clear any of these cases.
The issue is becoming compounded by the fact that some of the earliest notices have now been referred to the collections department within the IRS. Recent notices have stated "This is a notice of intent to levy your property... If you don't call us immediately to make payment arrangements or we don't receive the amount due within 30 days of this notice, we may levy your property...".
After months of increasingly threatening IRS letters, we are concerned that some Delaware employers may have paid these assessments out of fear, not knowing they are incorrect.
There is no way to tell how long it will take to resolve this matter, but we wanted to make our clients aware that this is a systemic problem, and that we have been working closely with DDUI on your behalf. We are now escalating this problem to our federal delegation, Senator Carper's and Senator Coons' offices.
If you have received one of these notices and have not already contacted us, please do so now. Do not pay the assessment.