Glitches in COBRA subsidy
May 5, 2009 by Bill MeltzerPosted in: Cobra, In this week's e-newsletter, Latest News & Views
No big shock here: The feds have had a few kinks in the system of sending out reimbursements.
A new notice from the Internal Revenue Service, CP 269C, is being sent to certain employers explaining that examiners are “reviewing” the claim and temporarily freezing the reimbursement.
So who gets picked for the notice and why? Employers whose 941’s tripped IRS’s “processing filters.”
Although IRS hasn’t said what sorts of errors could cause a notice to be sent, it did say that employers who receive a CP 269C don’t have to do anything until they’ve been contacted directly by an IRS examiner (usually within 30 days). At that time, the company will be asked to provide any additional info needed.
IRS will also send notices to reporting agents who are authorized to receive copies of their clients’ notices.
May 15th, 2009 at 8:42 am
Sounds like it might be a better idea to take the credit off your weekly (or whatever) tax deposit rather then as a credit on your 941’s.
May 21st, 2009 at 2:05 pm
I agree with Marilyn. The regulations allow you to deduct the subsidy from payments. It will consider the amount you enter on the subsidy line on your 941 as contributed day one in the quarter. Why would anyone want to wait and have the possibilty of the IRS holding up their refund.
May 21st, 2009 at 2:43 pm
Does it surprise anyone that our government has frozen reimbursement to employers? The administration is not pro employers and making it harder and harder to stay in business!
May 29th, 2009 at 1:56 pm
We use a payroll assist company therefore we must file for a refund.