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Sean O'Connor

CP148A Notice Received After State Employee Withholding/UIT Account Registration - Connection?

Hey tax folks, I'm super confused about something that just happened. I received a CP148A notice today for my small business, but the weird thing is the notice is dated November 2020 (so like 4+ years ago??), and I just registered a state withholding account last week. Could registering the state employee withholding account somehow have triggered this old IRS CP148A to be sent out? Or are these completely unrelated things? The address they used on the notice isn't even correct - it's for a related business entity, but still the wrong address entirely. Now I'm wondering if I need to fix both issues or if one caused the other. Anyone dealt with this kind of weird timing before?

This is actually a fairly common occurrence! The CP148A is the IRS's way of confirming a change of address for a business entity. What likely happened is that when you registered for the state withholding account, the state tax agency shared your information with the IRS through their information-sharing programs. The IRS then detected a difference between the address you provided to the state and what they had on file. The November 2020 date is strange though - that's definitely an error of some kind. The notice should be current. I suspect this might be a system glitch where an old template was used but triggered by your recent state registration. You should definitely contact the IRS Business & Specialty Tax Line at 800-829-4933 to correct this. You'll want to verify your current address and make sure all your tax accounts have the correct information. It's important to get this fixed promptly to avoid missing any future notices.

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Thanks for the info! That makes sense about the information sharing. Do you think I need to submit a formal change of address with Form 8822-B as well, or will calling that number be enough to fix it?

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Calling the IRS will help identify the issue, but I would recommend also submitting Form 8822-B to formally document the correct address. This creates a paper trail and ensures the change is properly processed. The form is simple and takes just a few minutes to complete. If you're concerned about the 2020 date, ask the representative specifically about that when you call. They can tell you if there are any outstanding issues from that time period that might need addressing or if it's simply a clerical error.

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I went through something similar when I registered my business for state unemployment insurance. The system gets triggered but can be super slow sometimes. I spent HOURS trying to fix things on my own until I found https://taxr.ai which can analyze these CP148A notices and tell you exactly what triggered them and what steps to take. Basically I uploaded my notice and answered a few questions, and it showed me that mine was triggered by a discrepancy between what I filed with the state vs. what the IRS had on file. Saved me so much time trying to figure it out! The system explained the next steps and even helped me prepare the right response.

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Does this actually work for business tax notices too? I thought these AI tools were just for personal tax returns. How accurate was it for dealing with the IRS?

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I'm kinda skeptical about using third-party services for tax docs. Isn't there a privacy concern with uploading official tax notices? Did you have to provide your EIN and other sensitive business info?

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It definitely works for business notices - that's exactly what I used it for. The system is specifically trained on IRS notices including the CP148A and many others. It was spot-on accurate and saved me from making a mistake in my response. As for privacy, they use bank-level encryption and you can remove your EIN or other identifying information before uploading if you want. I just blocked out my EIN on the PDF before uploading and it still worked perfectly. The system only needs to see the notice type and the specific language to analyze what's happening.

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Just wanted to follow up about the taxr.ai suggestion. I was hesitant but decided to try it with my business's CP2000 notice (different from yours but still IRS related). Honestly it was super helpful - it explained exactly why the IRS flagged my return and gave me step-by-step instructions for responding. Turns out I had misreported some 1099 income between my business and personal return. Fixed it in like 30 minutes instead of the hours I would have spent on the phone with the IRS. Definitely worth checking out for your CP148A issue.

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If you've been trying to call the IRS about this, you probably already know it's nearly impossible to get through. I was in a similar situation last year with an incorrect address on a CP notice and spent literally days trying to reach someone. A colleague recommended https://claimyr.com which basically holds your place in the IRS phone queue and calls you when an agent is about to answer. You can see a demo of how it works at https://youtu.be/_kiP6q8DX5c It saved me from being on hold for 3+ hours. I was actually able to get through to the Business & Specialty Tax Line and get my address updated in their system right away. The agent also explained that state registrations often trigger these IRS notices due to the information sharing agreements.

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Wait, how does that even work? The IRS actually allows a third-party service to hold your place in line? That sounds too good to be true.

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I've tried services like this before and wasted money. The IRS phone system is completely broken and no service can magically fix it. Better to just mail in Form 8822-B and wait for confirmation rather than trying these gimmicky "solutions" that probably don't work.

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It doesn't replace your call - it basically uses an automated system to wait on hold for you. When the system detects a human IRS agent is about to answer, it calls your phone and connects you directly to that agent. The IRS has no idea you're using this service - to them it's just a normal call that's been on hold. The IRS phone system isn't broken, it's just overwhelmed with callers. This service effectively waits in line for you so you don't have to sit there listening to the hold music for hours. I was skeptical too, but I got through to an actual agent in one attempt versus the 8+ attempts I had made on my own previously.

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I need to apologize for my skeptical comment earlier. I tried Claimyr yesterday after reading this thread, and it actually worked perfectly. Got connected to an IRS agent in about 45 minutes (while I was doing other work) instead of the 3+ hours I'd been waiting on previous attempts. The agent confirmed that my state registration DID trigger the notice due to an address mismatch and helped me update everything in their system. They also explained the weird date issue - apparently their system had a backlog of notices that got delayed during processing. Honestly shocked this service delivered exactly what it promised!

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Just a heads up - the CP148A is only an informational notice confirming an address change, but you should double check that the IRS has your CORRECT address on file now. My company received one of these after we moved, but the address they had was incomplete and we missed several important tax notices as a result. Ended up with penalties that took months to resolve.

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Thanks for the warning! That's exactly what I'm worried about. Did you have to file anything special to get the penalties removed since it was their error with the address?

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We had to request penalty abatement by filing Form 843 and providing evidence that we never received the original notices due to the address error. We included a timeline showing when we submitted our address change and copies of the incorrect CP148A. It took about 3 months to get resolved but they did eventually remove all the penalties. The key was proving we had made reasonable efforts to keep our address updated and that the error was on their end. Document everything and be persistent!

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Just throwing this out there - might also wanna check that ur state withholding account has the right address too! When I regstered mine the info got messed up somehow between the state and federal systems. Ended up with letters going to 3 different addresses 🤦‍♂️ Had to fix each one separately.

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This happened to me too! The state had one address, the IRS had another, and the state unemployment office had a third. Total nightmare for like 6 months until I got everything synced up.

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This exact scenario happened to my consulting business last year! When I registered for state payroll withholding, it definitely triggered an old CP148A notice - turns out the IRS had been sitting on it since I had filed a change of address form months earlier but never received confirmation. The key thing is that CP148A notices are just informational - they're confirming an address change, not demanding any action. But the 2020 date is definitely weird and suggests a system error or backlog issue. I'd recommend calling that Business & Specialty Tax Line number mentioned earlier AND filing Form 8822-B just to be safe. When you call, specifically ask them to verify what address they have on file for all your business tax accounts (income tax, payroll tax, etc.) because sometimes they don't sync up properly between different IRS systems. Also, double-check your state withholding account registration to make sure the address there matches what you want the IRS to have. These cross-system triggers can create a domino effect if the addresses don't align perfectly.

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