IRS Offers Penalty Relief Because of Late Start to Filing Season

Because of Congressional delays, the particulars regarding some of the 2012 tax matters with which we are now all dealing weren’t known until early January of this year. As such, some IRS forms couldn’t be finalized and processed until later in the game than usual. IRS, therefore, recognizes that the delayed issuance and processing of some forms may have impacted the ability of some taxpayers to timely estimate and pay their 2012 tax liability when requesting a filing extension.

So, taxpayers who can demonstrate “reasonable cause” and lack of willful neglect will not be snagged for the late filing penalty if their extension payment comes up short because of the unavailability of a whole raft of IRS forms, including, among a long list of others:

  • Form 3800 – General Business Credit
  • Form 5695 – Residential Energy Credits
  • Form 8582 – Passive Activity Loss Limitations

Check out IRS Notice 2013-24.