Why Do I Need to Tell the IRS My New Address?
The IRS keeps track of taxpayers using their Social Security number or Employer Identification Number (EIN), and their addresses. When you move, it’s really important to let them know, using Form 8822. This is how the IRS sends you important stuff like tax refunds, notices about your return, and other official communications. If the IRS doesn’t have your current address, you might miss important deadlines or notices, which could lead to problems.
This is especially important after a disaster. If your home or business has been impacted and you’ve had to move, the last thing you need is to miss out on potential tax relief or important tax information because of a wrong address. Keeping your address current is a simple step, but it can have a big impact on your tax situation.
Who Needs to File Form 8822?
Anyone who has moved and wants to update their address with the IRS needs to file Form 8822. This includes:
- Individuals: If you’re an individual taxpayer, whether you file a regular 1040 or something else, you need to file this form to update your address.
- Businesses: If you own a business that files taxes (like a corporation, partnership, or sole proprietorship), you need to file this form to update your business’s address with the IRS.
- Estates and Trusts: If you’re managing an estate or trust that pays taxes, you should use Form 8822 to update the IRS on the estate or trust’s current address.
- Tax-exempt organizations: If you are the contact person for a tax-exempt entity, like a non-profit, you will need to update your organization’s address with form 8822.
This form can be used for permanent changes and also temporary address updates, which might be helpful if you’re staying at a temporary location after a disaster.
How Does Form 8822 Work?
Form 8822 is pretty straightforward to complete. Here’s a step-by-step breakdown:
- Gather your information: You’ll need your Social Security number (or EIN for businesses), your old address, and your new address. If you are updating a business address, you’ll need the business name and type of business as well.
- Download the form: You can find Form 8822 on the IRS website. It’s a free, downloadable PDF that you can fill out on your computer or print and fill out by hand.
- Complete the form: The form is simple. You will need to check a box indicating if you are updating an individual address or business address. You’ll fill out your old address, your new address, your Social Security number or EIN, and your name(s). Don’t forget to sign and date the form!
- Send it in: You can mail the completed form to the address indicated on the form. These addresses depend on which state you live in.
- Keep a copy: Always make a copy of the form for your records before you send it to the IRS.
It’s important to file Form 8822 separately from your tax return. Even if you put your new address on your tax return, you still need to file Form 8822 to officially update your address with the IRS.
Important Considerations After a Disaster
Following a natural disaster, keeping your address current with the IRS is vital. Here’s why and how:
- Ensure Relief Checks Are Delivered: If there is a federal relief plan that involves checks or other aid from the IRS, you’ll want to ensure your new temporary or permanent address is on file to receive those payments.
- Tax Extensions and Relief: The IRS sometimes grants tax relief or extensions for those impacted by disasters. To take advantage of these, you need to make sure the IRS can reach you at your current address.
- Missed Notices: If you have tax issues, the IRS will send notices. These are often time-sensitive. You might not get these if your address is not updated, which could cause further complications or penalties.
- Temporary Relocation: If you’ve moved to a temporary location because of a disaster, use Form 8822 to update your address temporarily. When you move back to your permanent residence, be sure to update your address with the IRS again.
Common Mistakes and How to Avoid Them
Even though Form 8822 is simple, people sometimes make mistakes:
- Failing to File: Not updating your address is a big mistake. Even if you think the Post Office will forward your mail, the IRS needs an official notice to update their records.
- Filing with Your Tax Return Only: Again, you must file Form 8822 separately. Putting your new address on your tax return is not enough.
- Using the Wrong Form: Sometimes people might try to use other forms for address changes or include an address update with another type of document. Form 8822 is specific for IRS address changes.
- Sending it to the Wrong Address: Check the instructions of Form 8822 to be sure you send it to the correct address for your state or situation.
- Forgetting to Update After a Temporary Relocation: Once you have found a permanent address, make sure to update your information one more time, so the IRS knows your permanent location.
Related Concepts and Terms
Understanding these related concepts can help you navigate address changes and taxes:
- IRS Notices: These are letters the IRS sends out for various reasons (refunds, payment issues, audit notices, etc.). Having an updated address ensures you receive them promptly.
- Tax Return: This is the annual form you file to report your income. Although you put your address on the return, it is still necessary to update your address by filling out form 8822.
- Tax Refund: If you’re due a refund, the IRS will send it to the address they have on file, so making sure the address is up-to-date will help you receive your money.
- USPS Forwarding: While USPS forwarding can work, it’s best to notify the IRS directly, especially if the move is permanent.
- EIN (Employer Identification Number): If you’re a business owner, you’ll need to use your EIN when updating your address.
- Power of Attorney (POA): If someone else is dealing with your taxes on your behalf, they’ll also need to update their address as well as your own with form 8822.
Tips for Keeping Your Address Updated
- Be Proactive: If you are moving, update your address immediately with both the IRS and the USPS to avoid any missed mail.
- Double-Check: Review your completed Form 8822 before sending it to the IRS, making sure you’ve correctly filled out all required information.
- Keep Records: Keep a copy of Form 8822, including the date you mailed it, for your records.
- Plan Ahead: If you know that you’re moving in the near future, download and complete Form 8822 ahead of time so you are prepared.
- Check IRS transcripts: If you are concerned that you didn’t receive mail from the IRS or that your address is still not up-to-date, you can access transcripts online. These transcripts contain the most recent address on file with the IRS.
By taking the time to file Form 8822, you can avoid tax-related headaches and be sure that you’re kept in the loop about your taxes, especially following a significant event such as a natural disaster.