How did we mess up the 941 deposit?

[Edsel]

A customer showed me a letter from the IRS telling her that they were not going to assess a penalty for failure to deposit correctly because the rules for 941 deposits have changed in 2018.  Has anyone else received such a letter??

The customer had seven payrolls in the first quarter of 2018.  The tax deposits were made on the same days as the payroll was dispensed to the employees.  Reading from the Pub 15, the client has three business days to make their deposit unless the liability is over $100,000.  Clients' typical liability is between $4000-$5000.

How did we mess up the 941 deposit?  Is the IRS just plain wrong?  (Won't be the first time).

 

[Lee B]

In my experience, the use of the phrase "failure to deposit correctly" is only used when a deposit which should have been made via EFTPS or other electronic means

was made by check or cash. Your letter may actually be due to a IRS computer glitch.

[Gail in Virginia]

I have gotten a very similar letter if they payment was made after 8:00 p.m. ET on the day before the payment was due. In other words, if payment was due on 4/17, and I made the payment after 8:00 on 4/16 they send a letter saying that they are going to waive the penalty but I screwed up.  I ignore it as long as they keep waiving the penalty.

[Catherine]

26 minutes ago, Gail in Virginia said:

payment was due on 4/17, and I made the payment after 8:00 on 4/16

BAD taxpayer!  NO early payments!  NO cookie!  We let you off penalty THIS time....grrrr.  

[Roberts]

The IRS system insists I should be a semi-weekly depositor but by their own rules and that of the IRS person on the phone I qualify for monthly.

Since we used to be a semi-weekly I just go ahead and pay it semi-weekly now. During tax season I missed a semi-weekly payment (made it at the end of the month) and they sent me a letter and a penalty.