Update: Delaware Employers Receiving Incorrect IRS Notices


November 5, 2019

On August 5th Faw Casson issued a special alert addressing incorrect IRS notices many Delaware employers have been receiving throughout 2019. These notices claim to assess unpaid payroll taxes from 2016, and many of the assessments are in excess of $10,000, including penalties and interest.
 
The problem 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 responded (sometimes repeatedly) to the notices on behalf of clients. 
 
Faw Casson has been working closely with the Central Delaware Chamber of Commerce to bring light to this situation and inform as many Delaware businesses as possible.
 
We have recently learned that the IRS has finally acknowledged the notices they have been sending are wrong. The IRS issued an internal memorandum on August 28, 2019 to front-line and collection employees informing them of the systematic problem affecting Delaware employers.
 
Resolution of each notice must still be handled individually, and there is no way to tell how long it will take to resolve them all, but we wanted to alert you that this is a systemic problem, and that we have maintained contact with DDUI and others on your behalf.
 
If you have received one of these notices and have not already contacted us, please do so now. DO NOT PAY THE ASSESSMENT.



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