Last week, the IRS provided guidance for transitional relief of late payment penalties due to the delayed publication of some IRS forms relating to the 2012 tax year. As a result of the American Taxpayer Relief Act of 2012, which was signed into law on January 2, 2013, many tax forms were delayed. These delays may have affected the ability of some taxpayers to timely estimate and pay their 2012 tax liability when requesting an extension to file.
For each taxpayer who has requested or will request an extension of time to file which contains one of the forms listed in the notice, the IRS will waive the late payment penalty provided the taxpayer made a good faith effort to estimate their tax liability on their extension. Taxpayers who receive a notice should submit a letter describing eligibility for relief, identify which form(s) was included in the taxpayer's return, and a reference to Notice 2013-24.
For more information on the American Taxpayer Relief Act of 2012, contact Jim Forbes, CPA, principal, Skoda Minotti’s Tax Planning & Preparation Services at 440-449-6800 to schedule an appointment. You can also leave a comment or question below.