Importance Of Keeping IRS Informed Of Your Current Address
So you think you can move around and keep one step ahead of the IRS, thus avoiding receipt of their occasional nasty grams which most of us get at one time or another.
But it’s not that simple, and you keep the Revenooers in the dark at your peril!
The Internal Revenue Code repeatedly uses the phrase “last known address” which is an important concept with respect to your ability to receive refunds, as well as a variety of notices and documents which IRS may send you from time to time. And now hear this: when a document is sent to a taxpayer’s “last known address,” it is legally effective even if the taxpayer never receives it!
A taxpayer’s “last known address” is defined as the address on the taxpayer’s most recently filed and properly processed return, unless the IRS has been given clear and concise notification of a different address.
So, f’rinstance, if you move after filing a return and IRS sends a refund check to your old address, the refund may be delayed and IRS won’t owe you any interest for the delay.
Likewise, if IRS sends you a “statutory notice of tax deficiency” to your old address, you may never receive it. After 90 days, you will lose the right to contest the matter in the Tax Court.
There are other notices IRS must send you before taking certain actions affecting you (such as contacting third parties about your tax situation, issuing summonses, and putting liens on your property.)
Thus, nothing is to be gained by keeping IRS unaware of your whereabouts. If you move after having filed your last return, check out IRS Form 8822 regarding notifying the blokes of your current premises.
And here’s one from the State of Oregon which may be a harbinger of things to come for folks living in other states. A new program there, “OReGO,” will tax drivers on a per mile driven basis, rather than relying on the state gasoline tax for the dough with which to maintain roads and bridges. Oregon has the distinction of implementing the first pay-by-the-mile program in the U.S.
For now, the program is voluntary, and is capped at 5,000 participants, but the eventual goal is to make it mandatory – forever. Get ready for this in your state – we hear there are already 28 states looking at such a program to fill their coffers as well.
And let’s hear it for the House of Representatives, which last month voted by acclamation to permanently extend the Internet Tax Freedom Act, preventing taxes on email and Internet access services. The Act is otherwise scheduled to expire this coming October 1, so let your Senator and President know that you like this recent House action!
CONSULT YOUR TAX ADVISOR – This article contains general information about various tax matters. You should consult your CPA regarding the implications to your own particular situation.
Jeff Quinn, the author of this article, is a shareholder in Ashley Quinn, CPAs and Consultants, Ltd., with offices in Incline Village and Reno. He may be reached at 831-7288, and welcomes comments at [email protected].