Notify the IRS when you change your address

Here’s a question you might not expect to hear from your accountant: What’s your last known address?

Your answer could have tax consequences. Why? For purposes of most IRS correspondence, your last known address is the one on your last tax return. That means if you’ve moved your residence or business since filing your return, you might not receive IRS notices or refunds.

Are you thinking “no news is good news”? In the case of tax notices, no news may mean interest and penalties are accruing. In general, mailing a notice is sufficient for the IRS to meet legal notification requirements —whether or not you actually receive it.

Your refund can be affected, too. One example: The IRS mails failed direct deposit refunds —such as those transmitted to a closed account —to your last known address.

Even when you update your address with the post office, it’s still smart to notify the IRS directly. The best method is to complete and mail “Form 8822, Change of Address.” You can also write a letter and send it to the same Internal Revenue Service office where you filed your tax return.

Remember to notify your state department of revenue of your new address, too, as well as customers or former employers who may need to send year-end tax forms.

Give us a call if you’re planning a move. In addition to helping you update your address, we can help determine if you’re eligible for tax-related relocation deductions such as transportation, travel, or lodging.

This entry was posted in All Service Providers, All Taxpayers, Daycare Providers, IRS Tips, Record Keeping. Bookmark the permalink.

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