It’s summer and many people move to a new home while school is out for a few months. This is especially true in the expat community where changes in work location occur with regularity. Moving can be chaotic, and amid all the packing and logistics, it's easy to forget one critical task—properly advising the IRS of your new address. Skip this step, and you risk missing key correspondence, such as a Notice of Deficiency which can trigger tax assessments, penalties, collection activity and even a passport revocation if you fall into 'seriously delinquent tax debt.'
This article explains the imperative of updating your IRS address, how to do it correctly, and what can go wrong if you don’t. Many Americans are moving abroad. This group faces various U.S. tax issues and it is especially critical for Americans overseas who rely on foreign mail services to understand the nuances of notifying IRS of address changes. Overseas Americans know all too well the extreme challenges faced by frequent relocations for work and sometimes unreliable foreign postal services. Making sure the IRS is properly notified must be at the top of the moving “to-do” list.
IRS And The Taxpayer’s Last Known Address
A notice from the IRS is generally deemed valid if it is sent by certified or registered mail to what is called the taxpayer’s ’last known address.’ If the notice was properly mailed to that address, actual receipt by the taxpayer is immaterial. The address listed on the taxpayer’s most recently filed and properly processed tax return is the ‘last known address’, unless a taxpayer has provided the IRS with clear and concise notice of a new address. Notifying a third party, such as a different government agency, of a change-of-address is not considered clear and concise notification for tax purposes.
How Reliable Is The United States Postal Service National Change Of Address System?
In Phillips v. Commissioner (T.C. Memo 2024‑44), decided in July 2024, the Tax Court rejected the IRS’ claim that it had properly updated its records using the United States Postal Service National Change of Address system. The IRS could not convince the Tax Court that the new address was properly matched under special procedures, leading the court to invalidate the entire notice of deficiency.
This case highlights the importance of relying on the USPS’s NCOA database. It is understandable that taxpayers might assume that filing a change-of-address with the USPS is enough. While the IRS receives weekly updates from the USPS NCOA database and cross-checks it against taxpayer records, the process is not foolproof. In Phillips the taxpayer’s son shared his father’s name, and it was the son who had filed a change-of-address with the USPS. The IRS system mistakenly applied the son’s new address to the father’s tax record and sent a deficiency notice there. The court held the notice invalid because it was not sent to the taxpayer’s true last known address.
The case is a reminder that while the NCOA system can be very helpful, it can also cause errors for both the IRS and the taxpayer. While notifying the U.S. Postal Service can ensure mail forwarding, this method does not necessarily update IRS records and should not be exclusively relied upon when it comes to U.S. tax matters. The surest way to update the IRS is through means detailed below, filing a Form 8822 or by a direct written notice.
Courts Are Unforgiving , Even When You Think You’ve Given IRS Notice Of Address Change
In Davis v. Commissioner, T.C. Memo. 2025-72 (July 10, 2025) the Tax Court decided a case involving a taxpayer who moved in 2021 but failed to update the IRS. Even though the taxpayer provided a handwritten letter and claimed to have spoken to IRS agents about the address change, she lacked proof of mailing or official IRS acknowledgment. The court held that because the IRS records still showed the old address, the notice of deficiency sent to her old address was valid. As a result, the petition she had filed with the Tax Court was treated as untimely and her case was dismissed.
The lesson is clear: verbal claims and informal letters concerning a change of address just don’t cut it. Without verifiable proof, the courts will uphold the IRS if its notice was sent to the ‘last known address.’
How To Correctly Notify IRS Of Your Address Change
If your move occurs before filing your tax return, simply list your current address on your return. Once processed, the IRS will update its records. Tax returns should always be sent through a method permitting verification (proof of mailing or electronic submission) so that it can be established that the return and updated address was properly delivered.
Another option is to file Form 8822 for individuals or Form 8822‑B for businesses. Both of these forms must be processed, which IRS estimates will take four to six weeks’ time. They should be sent by certified or registered mail, with proof of mailing retained.
You may also write a letter to the IRS that includes your full name, both the old and new addresses, Social Security Number, and signature. If you filed a joint tax return, then the information and signatures for both spouses must be included. Send the written address change information to the IRS processing center that handles your tax return. Again, use registered or certified mail to send in the form and retain the proof.
The IRS also permits taxpayers to call and inform the agency that their address is changing. However, this method is not nearly as reliable as written communication backed up by verifiable proof of mailing.
Special Note For Americans Abroad With Address Change
Foreign postal systems can be unreliable. If you are living abroad, the rules become complex when it comes to the tax law and acceptance of foreign postmarks. The tax code itself does not recognize foreign postmarks, but, fortunately, the IRS has had a long-standing policy on accepting official foreign postmarks for federal tax returns, refund claims, statements, or other documents. It is highly recommended that a taxpayer use the foreign country’s version of certified or registered mail because the receipt can serve as proof of timely mailing/filing. Keep in mind, however, that private couriers such as FedEx or DHL are not covered by this rule unless they are specifically designated as IRS-approved private delivery services.
Final Thoughts
Address changes may feel like a minor administrative detail, but when it comes to U.S. tax matters, making sure that all address changes are properly reported to the IRS is imperative. By updating your address properly, through your tax return, Form 8822 or 8822‑B, or a properly mailed written notice, you protect yourself from missed IRS correspondence and notices, unanticipated penalties, and even messy passport issues. Take care of this step early, especially if you’re moving abroad, and keep proof of your notification. Having the proper proof could save you from a bureaucratic nightmare later on.
Stay on top of tax matters around the globe.
Reach me at vljeker@us-taxes.org
Visit my US tax blog www.us-tax.org
NO ATTORNEY-CLIENT RELATIONSHIP OR LEGAL ADVICE
This communication is for general informational purposes only. It is not intended to constitute tax advice or a recommended course of action. Professional tax advice should be sought as the information here is not intended to be, and should not be, relied upon by the reader in making a decision.