We are a mobile society. Most of you have sent out those cute “We Have Moved” cards that you’ve bought from your local card store or even those less attractive green or yellow cards from the U.S. Postal Service.
The fact is that the average mortgage is only about seven years because Americans keep moving. If you are a part of this mobile group, you must ask yourself a vital question: Have you informed the Internal Revenue Service of your move?
The IRS is required to contact you at your last known address. Most of us do not want to hear from them, but if they send you a notice of deficiency, you only have 90 days to file a petition with the court if you disagree with their notice.
The IRS has updated their Revenue Procedure regarding the taxpayer’s “last known address.” This term is not synonymous with the taxpayer’s actual current address. This means that a notice of deficiency can be legally effective even if mailed to an old address and never received by the taxpayer.
Form 8822 – Notification of Change of Address
This is the IRS’ equivalent of “we have moved.” The IRS requires a “clear and concise written notification of a change of address” be sent to the Service Center serving the taxpayer’s old address. Form 8822, Change of Address, can be used to meet this requirement.
Last Known Address
Revenue Procedure 2001-18 says that the IRS generally will use the address on the most recently filed and properly processed return as the address of record. If a taxpayer files a return with new address information, the proper processing of the return will update the taxpayer’s address of record. In general, a taxpayer’s address of record will be updated for the name and taxpayer identification number under which the return is filed.
- The word “return” does not include applications for extension of time to file a return. A new address on Form 4868, Application for Automatic Extension of Time to File U.S. Individual Income Tax Return, will not be used to update the taxpayer’s address of record.
- In general, a return will be considered properly processed after a 45-day processing period that begins the day after the date of receipt of the return by an IRS Service Center.
- HOWEVER, because of the high volume of returns received during busy season, if a taxpayer provides new address information on any type of Form 1040 that is received after February 14th and before June 1st, the return will be considered properly processed.
If you would like further information regarding this topic or any other tax related issue, please contact Henssler Financial at 770-429-9166 or [email protected].