Are You Sure You’re Using an IRS-Designated Delivery Service?

A recent court case is a reminder to confirm that you’re using an IRS-designated private delivery service. Otherwise, your mailing may be late.

And even one day late is still late.

One company had to deal with the fallout from that fact recently.

Following an audit, IRS issued a notice of employment tax determination to Belagio Fine Jewelry Inc. The notice stated the company didn’t file quarterly employment tax returns as required for two years — i.e., it’d misclassified a worker as an independent contractor.

Belagio filed a petition for redetermination of employment status with the U.S. Tax Court just four days before the 90-day window closed.

The petition arrived one day after the deadline – even so, if the company had used a private delivery service designated by IRS, the petition would have been timely filed. But that’s not what happened.

As things turned out, the Commissioner of Internal Revenue asked the Tax Court to dismiss the case, saying because of the missed deadline, the court didn’t have jurisdiction.

The Tax Court said the 90-day deadline wasn’t jurisdictional.

Review the IRS List

In Belagio Fine Jewelry Inc. v. Commissioner of Internal Revenue, the company used FedEx Express Saver, and that’s not an IRS-designated private delivery service.

Here’s the key: Although several FedEx products are approved, not all are. Same goes for UPS and DHL Express.

So, it’s important to look up the latest list from IRS so you can comply with the “timely mailing as timely filing/paying” rule for returns and payments.