Need for the change of address with IRS

A repeatedly quoted phrase is that the only certain constant in the lives of individuals and organizations is changing. The change could be either planned or predictable and unplanned. In each of these circumstances, it might trigger the change of physical or cyberspace. A big leap like marriage or a new job or business offer in another state is most welcome. A newly acquired address, however, brings with it new challenges and opportunities but none is more real as the possibilities of current contacts failing to be in touch or make deliveries. This is more severe in the case of the taxman who by law and rules is required to keep tabs on the taxpayers’ location for purposes of planning and implementing government programs. Imagine missing out on communication. (IRS) on a tax refund check or a new applicable rate or relief! Just take a moment to reflect on the possibility of your previous address being used for fraud by unscrupulous individuals aware of the change of address which IRS is not aware of – therefore:

Clear benefits of taking the prompt action of updating the National Change of Address (NCOA) database are: maintaining of constant correspondence with IRS on taxation and related matters; avoidance of fraud related to the address; accuracy in prediction and computation of taxation over a period of time; avoidance of gaps in tax return records; continuity in mutually agreed IRS tax payment plans; and a clean traceable tax history. All individuals and organization desire to have clean books with IRS in order not tojeopardize own or shared aspirations and goals.

An obvious good reason to change your address details is that the four ways of doing it is fairly simple and not time-consuming. They are: firstly just walking in to make an oral notification in person or on phone with details of name, new and previous address and the social security, secondly is to fill in Form 8822 or Change of Address or Form 8822-Band Change of Address or Responsible Party for the case of Businesses, the later usually requires Power of Attorney and Declaration of Representative; thirdly is using the current tax return or refund forms to make the alteration; and fourthly is the tried and tested utilization Postal Service (USPS) which however has proven to be slower and less efficacious to the previous three. In all the cases it takes on average five weeks to receive official communication of the updated changes. In the case of employment tax Forms 148 A and B will be issued.

Organizations and business just like living organisms have lifecycles. All have an original address in the start-up phase and a growth curve that includes expansion and changes in address. The obvious benefit to organizations to notify IRS of changes in the address is in avoiding penalties that may accrue from incompleteness in returns and lateness in correspondence with IRS. Which entity would not like a good image confirmed with clean, timely, accurate and complete tax returns? Imagine being part of a company or a not-for profit organizations in bad books with the taxman.