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Once we have updated our systems with the responses to . . .

Question

Once we have updated our systems with the responses to our B-Notice letters, do we file corrected returns with the IRS?

Answer

No. The Regulations (Sec. 301.6724-1) specifically state that you do not file corrected returns. Instead, you update your system using the information the payee has returned to you and use that for all future filings. In addition, keep the documentation provided to you by the payee on file; you will need it in your "Reasonable Cause" defense if you receive a penalty notice from the IRS in the future.

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