IRS Allows Penalty Relief Because of Late Tax Season Start

IRS has announced late-payment penalty relief to individuals and businesses which requested a tax return filing extension because of the need to attach certain forms to their returns, which forms weren’t actually published by the government until as late as March of this year, resulting from the late Congressional action on the “fiscal cliff” arguments.

The relief applies to the late-payment penalty (0.5% per month) charged on tax payments made after the regular filing deadline.

Taxpayers using forms claiming such tax benefits as depreciation deductions and a variety of business credits qualify for this relief. A complete list of eligible forms may be found in Notice 2013-24.

Taxpayers qualify for this relief if they filed a timely extension, estimating the tax they thought they would owe, and paying the tax by the extension date, following up with actual return filing by the extended due date.